I don't understand the complainers about graphics.
First, Tegra is adequate. We're not going to get blown up 3DS resolutions on this "handheld".
Secondly, I think we are in a time where graphics mean less and less compared to gameplay. Sure hardcore gamers will nitpick, but I don't understand why Nintendo should overprice their system and drive up development costs to appease some hardcore tech gamers.
And last, third parties haven't been giving Nintendo many ports for what feels like... forever? If you want to play the most jaw-dropping $100+ million AAA 3rd party game, go buy a Neo or Scorpio. If devs are excited about NX, a large part of that is likely because they won't be in an arms race for graphics, which can allow for a lot more risks and unique experiences.
To converge their console/handheld business is brilliant. The absolute worse thing they could do at this point is get into an arms race with MS and Sony, release another expensive system, and drown some more.