Oh I think they do. They just want to play Nintendo games with top level graphics and performance.
I think many just don't realize that type of box wouldn't sell (just like the GameCube didn't). There's not a huge market of people who are going to pay $400-500 for a top level console who's exclusives are primarily family friendly games with cartoon art styles. Most in that market want things like Uncharted, God of War, Halo, Gears of War, Forza, GT showing off the console with realistic graphics etc.
As much as I'd like a game like BOTW on good hardware with better resolution, framerate, no pop in etc., I accept it just is what it is. Nintendo has to keep costs down to appeal to the parent market, the portable gamer market and as a cheaper secondary platform to people like me that main other consoles.
Even if they had a top power console, had games like GTA, CoD, Fifa etc. day and date with the others it wouldn't become many core gamers main platform. Simple reason is that people that like the third party western AAAs are going to be more drawn to exclusives like Uncharted, God of War, Halo, Gears, Forza etc. than Mario, Zelda and Pokemon.
Nintendo has their market (their fans, kids/parents, portable gamers) and their place as the secondary platform that offers something different to core gamers. Doing something different is key to those markets, and keeping prices down is key to them as well.
