I partially agree, but where would RAM fit in to this conversation? And I think another thing to add to this is the real world performance of a Ferrari, i mean, on the test track they can say 240MPH that and 0-60 in 2 seconds that but while actually driving on a road you will never go over 80 mph most likely.
RAM is short term storage. It's used for three things:
1. Multitasking. Every program launched sits in RAM. The more programs up, the more RAM you need.
2. Load times. Storing part or all of a program in RAM allows for reductions in loading speeds. RAM is very fast compared to disc or drives.
3. Textures. The more RAM you have, the more textures you can load at once. You can also load higher resolution textures, albeit not as many of them.
If you look at the design of the PS4, this is exactly what the machine does. The sharing and social functions require multitasking. The emphasis on sleep modes and instant play requires load time reduction. And high resolution textures help with that "next gen" feel.
But the question most people wonder, is if the Wii U can compete with such tech. Clearly the PS4 is a stronger system, on paper. And because of this, people draw back to the last gen where Wii was outmatched by the HD twins. However the Wii U architecture isn't as lacking as people presume. The Wii simply couldn't do what the HD twins could, but the Wii U can do everything the PS4 and Durango can, just scaled back slightly. You won't see as many people on screen. The textures will be lower resolution in some games. The physics won't be as impressive. That kind of thing. But in terms of image quality, and if the system can run stuff like Deep Down? Yes, absolutely. It just won't be as impressive in a 1:1 comparison.
This generation is going to be like the Genesis and SNES, or the PS2/Xbox/GC gens, where the competing systems are all capable, with some compromises, and a few games on each that just wouldn't work on their competitors.