We'll see. The word from a game developer I know who has a Wii-U is that it is. It would be stupid of him to lie, but it might not be the final product. The first Wii devkits were basically gamecube devkits with extra bits added. Although with the launch not that far off, they'll need to get a move on.
The "based on POWER7 architecture" is probably just marketing talk. Like Nintendo did when they said the N64 was based on a Silicon Graphics workstation. It sort of was, just a heavily cut down version of an older generation. The POWER7 is not actually that fast to start with though, watson is fast because there are >2000 of them.
After the hard to program PS3, I would expect the PS4 to be a linux based x86-64 box with a lot of GPGPU cores used with OpenCL. The 720 is a tougher call, but something similar with windows instead of linux & directcompute instead of opencl would not suprise me.
You could say that PS3 was "linux-based"

it'd be stretching the truth a bit but PS4 will be "linux-based" in the same way. As for OpenCL, not sure, it's a GPU from AMD/Ati that much is almost certain but they have their own GPGPU stuff, like Brooke, so might favour that instead.
I almost took a job on a Wii-U project but after developing for the Wii I have been seriously put off ever working on a Nintendo platform again. Friends tell me that they've gotten better but that's easy when you're the worst platform to develop on! Anyway, interesting that your friend says it's still based on the old CPU. I'd personally have thought it'd make more sense to just include that rust bucket and the entire Wii hardware on a single extra chip whilst using a newer multi-core design for the rest. Oh well.
Xbox720/Next, it'll be more of the same dashboard and DirectX11 & DirectCompute with the same extra access for those willing to use it. Just like the X360 but a lot faster, fix the negatives with the Xenon CPU - out of order would be nice but who knows wtf we'll actually get.
I think I'd like to get back into console dev', been doing mobile development instead for the last 4 months and it's a world of crap in comparison!