It is. The graphics chip is just as powerful. Look at Nintendo's previous games. They focus on gameplay and generally use more cartoony graphics. Also, you can get HD cables which will make it look MUCH better. They will be showing off these graphics in the upcoming game, The Conduit.
Hypocritical much? I also said it is ALMOST as good as the Wii is capable of. If you get the HD cables then it also looks MUCH better. Do you have a Wii? If not, how would you even claim to know what you are talking about?