I actually agree with Nintendo. Back in the mid to late 90's, there were 2 camps, the guys who liked DOS games and the guys who liked Windows games. The difference? Windows games looked a lot cooler, but the DOS games PLAYED a lot better. I couldn't give 2 cents to 3d, if you use colors well, have a nice framerate and have an innovative game.
I thought the n64 graphics were overrated, and always preferred the superior game play of SNES games.
The people have spoken. HD will come, but why rush it, so long as the content is (finally) good.