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I think this leads to understanding what the Wii is. Wii is an intermediate console for Ninty. It's there simply to upset the established market. A "Joker" console as I now like to call it with no Batman to stop it haha.

Meaning it's setting up the next console that can release with an even more ambitious hardware at a larger price which is able to make more profits and revenues because they have alot of brand appeal then entering the market. Thus the "Two-Face" console will be able to dominate the world. This is the goal of Ninty's strategy. However Wii has done a lot bette than they ever imagined but I doubt that'll mean they won't upgrade the hardware as they know what it takes to win the market and devs.