I think the "Nostalgia Cycle" is about 20 years (even if VH-1 is trying to jump the gun and make us nostalgic for the 90's because they've run through the other decades already.) The current trend towards joysticks-with-old-time-ROM's-built-in is keeping that true.
I think that the President of Nintendo is really saying that he's tired of trying to one-up his competitors every few years and that he wants to concentrate his resources on being perfect in this hardware climate. He better be right about this or he'll easily become the Former President of Nintendo.
But I agree. I mean, just exactly how many frames/sec do we need?