People need to clarify what they mean by generation. Annual refreshes are different to 'DirectX' level capability improvements. SM3 parts fit into the same generation in that respect, and SM4 is another gen. Ultimately I think using the term generations causes more trouble than it's worth. How many architectural advances is Wuu over XB360 relative to AMD's product line-up since 2005?
People are just going with what it means to them.
Suppose Shin en would be the one who should clarify... Though reading through the interview i suppose they did. It seems pretty clear they are talking about gpu generations. And its not like english is their first language. Though i dont really find it misleading or confusing in the context of the interview. If wii u has even just a 2008 gpu base it would be several gpu generations beyond xenos.
As for the people calling shin en pr bs, liars, ignorant of ps360 architecture/power etc....
You may want to research exactly who they are and where they come from. Shin en may only release games under its name for nintendo platforms, but it members have experience on practically all systems, including 360, but thats just a drop in the bucket, really im talking so many systems, like ps2 to amiga, to c64 to the freaking sinclair.
They come from the pc demo scene (mostly abyss) and they are good. damn good, future crew good. They know how to get the most out of everything they get their hands on, and they've had their hands on practically everything.
People may want to listen to what they have to say.