From the glimpses of the MC corners from the concert, the general sentiment among the wota there was that Tsunku
did not mention having to find someone who is a strong singer/dancer. If anything, he seems more concerned about the "character" of the future 12th gen member(s). I believe he wants someone interesting, and the theme for the audition being "mirai shoujo", he probably is more interested in slowly training the performance aspect to eventually take the lead for after the current centers leave...Tsunku's thinking long range, not like an "instant return", as he mentioned.
Let's look at it objectively. Putting aside whatever we think about the current lineup, Tsunku seems to satisfied with having one Suppin Utahime (Sakura), one ace (Riho), and from his notes on the 53rd single, he appears to be pushing Fukuchan, Ayumi, and Maachan to be the next vocal backbone of the group. We might disagree with him and want more talented people who can sing and dance -- or even pushing the current members who can perform but are relegated to the back line (*cough* Duu), but Tsunku is also thinking of the variety aspect, which will be SORELY lacking once Sayu inevitably leaves. Harunan and Eripon have potential, but their appeal is a bit narrow and Tsunku probably wants a couple more spitfires to add variety to the TV presence. MM right now is undergoing major restructuring, and as the producer he has a vision for them...we're just fans, what do we know.

We've seen Tsunku pass up on more obvious talents in some auditions previously, but I've come to realize that Tsunku isn't out to create a super performance powerhouse (Platinum Era notwithstanding, but he got lucky with the fact that he got a good crop to work with). Morning Musume is his pet project, and they appear to be HIS vision of what he wants in an idol group. It's like he does it to suit his own sensibilities, and if it makes money, great. I think that as long as it breaks even and sticks to his vision for the group, he would be satisfied. Tsunku's a bit weird.

Yes, he wants the group to do well because well, pride and all plus money does talk. But I don't think he compromises TOO much over his ideal for the group. Even if a super performer with godlike ability in singing and dancing and looks like a freaking goddess suddenly auditions for the group, unless she fits his conception of "Morning Musume", he'd turn her away.

I also have this feeling that Tsunku's got his eye on a couple of the Eggs...um, I mean Kenshuusei >_> The extremely short application period means that he probably has an idea of who he wants already, but it's really a matter of them applying (the Kenshuusei I mean), plus you never know if you get surprises from out of the idol system. Raw talent seems hard to find nowadays. >_> I fully expect to be completely surprised by his choices, probably end up bitching about stuff like "BUT SO AND SO CAN SING BETTER THAN WHO YOU LET IN WHYYYYYY", or "What were you thinking, Tsunku????", and grump about a lot until I finally get won over by his choices because for some reason, the MM effect is such that I eventually get to like them.
Though I never got to like Koharu until after she left... 
But yes! Auditions! I hope he doesn't troll us like with 11th gen again. I mean, I like Sakura but STILL. Let us have a proper audition process! I felt so cheated out of the opportunity to whine and speculate over the finalists!