"it's probably even further out of date in terms of hardware than the Wii was at launch"
So?
Do you have any understanding of product development? The balance is all about building a hardware platform that will perform *adequately* for the projected lifetime of the product, at the cheapest Bill Of Materials cost, again across the projected life of the production, in order to reach a given price point. It's not about shoving the most high end silicon you can source into a box and sticking a badge on it.
Only time will tell if they've built it underpowered, if the 3rd party ports start to tail off due to lack of performance, and the in house titles aren't able to plug the sales gap. People said the same thing about the Wii at launch, and I don't think anyone can seriously consider that a failed product.