There is absolutely no reason why having HD graphics has to affect the control scheme or Nintendo's approach to the casual gaming market, so I don't really see how you get "Wii Vs. HD".
And of course having more power in the graphics department allows for innovation. Think back to the days of Pacman. Don't you think there were developers with ideas that couldn't see the light of day because the hardware wasn't powerful enough at the time? It's just the same now. If the Wii was capable of HD I think we'd have seen a wider variety of games for it and in sales terms it would have done even better. It just wouldn't have filled bank vaults with cash quite as fast for Nintendo.







