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The Gamecube was a good deal more powerful then the PS2, not quite as powerful as Xbox 1. The Wii is more powerful then Xbox1, and obviously not near the 360 or PS3, but if you look at a game like Resident evil 4 on the GC, and imagine what they can do with a system twice as powerful, there is no need for more.
First gen games never look anywhere near as good as later releases. It takes developers time to learn how to take advantage of a cpu/gpu before they can push the limits.
Having played twilight princess for 16 or so hours, I could live with graphics like that. If I want uber-realistic looking games, my PC blows away the PS3/360 anyway.
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