I think all consoles are overpriced. That doesn't stop me from buying them though. It's as simple as the fact that if I want to continue to play the latest games, I need the latest console.
Mind you I can choose between a 360 and ps3, they are similar, but I pretty much have to buy the next Nintendo console if I want to keep playing nintendo titles.
The xbox launched at around 300 bucks for a bare-bones unit... 400 if you wanted a harddrive. The ps3 launched at 600.
My guess is that the Wii U will launch at around 300-350 bucks, which is pretty reasonable considering the cost of that screen on the controller. I might even consider 400 bucks to be fairly reasonable. I'm really going to have to hold that controller in my hand before I can give a good price point.
Anything higher than 400 and you'll sure hear me complain.... maybe enough to wait a year or so for the price to go down. I'll still be buying the damn thing though.
I've really got to think that the game is going to be changing soon. We already have systems capable of 1080p graphics. Mind you both the ps3 and 360 could use a LITTLE more oomph as some games are still only capable of being rendered in 720p but it isn't going to make a significant difference.
The only thing that could be improved upon from an upgraded xbox/playstation are minor things, like increased draw depth or more characters on the screen. We are essentially already at photo-realism, or at least as realistic as you can get given current game development times and budget. Also if we push the realism any further we are going to get into that creepy "uncanny valley" anyway.
Where we are now kind of reminds me of the days late in the 16bit generation. A few companies like sega tried releasing 32 bit consoles but the difference in quality was so slight that nobody bought them. A ton of consoles fell to the wayside until we finally got to the 64bit generation and had a significant change, namely 3d rendering.
The wii U will sell pretty well, afterall the wii is showing it's age and you pretty much have to get it to play nintendo stuff. The "720" and the "PS4" might be a hard sell though. That is unless those launch titles look amazing.