I agree with Nintendo that HD output is totally unimportant. I only wish the Wii had 256MB or so of memory, instead of 88+3MB, and that the processor was perhaps clocked closer to 1GHz, and the GPU closer to 350 MHz. Oh... and that it played DVDs -- it would totally replace my PS2 as my primary DVD watching device if it could.
If Nintendo had gone the extra mile, and done most of those things (more memory, slightly faster GPU, DVD playback would be enough), the Wii would utterly dominate both the casual AND hardcore markets right now.
They didn't need to make a 512MB, multi-core 3.2 GHz CPU, 500+ Mhz GPU, HD-capable monster -- but they did set the bar just a bit too low, IMO. I think with a little extra "oomph", publishers would have been all over it for hardcore games by now, and the other two consoles would be utterly out of the picture. I think the Wii is just a tad too weak for its own good. A little more power would give it the legs it needs to stomp out the competition completely. As is, it'll never manage that kind of triumph (like the PS2 did), despite being a good seller.
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