The evolution of hardware isn't just about making games look prettier. It radically changes the very process of designing them.
According to him, more powerful components allow for the realization of ideas that would be technically impossible on weaker machines.
As an example, he cited the transition from Nintendo 64 to GameCube. Although it would have been logical to strive for realism, the additional performance allowed for the creation of The Wind Waker. The cel-shading style and Link's rich facial expressions became possible precisely because of the new processor's ability to handle complex animations in real time, which was impossible on the N64.
Instead of chasing teraflops and ray tracing, Nintendo is betting on frame rates and gameplay enjoyment. The next Zelda may surprise with something that is not visible in the technical specifications.