I don't doubt an HD Wii is in the works, but unless Nintendo can make HD Wii games compatible with the existing Wii, I don't see them releasing such a system in 2009. I think it's contingent on the idea that PS3 and 360 will become more popular along with HDTV - but so far that has definitely not been the case. In fact the longer Wii is on the market, the more it sells - and vice versa for the HD-capable consoles.
As for the idea that Nintendo isn't competing with PS3 and 360 - that's exactly what Nintendo wants you to think - it makes it oh so much easier to take over the industry by stealth.
The fact is, PS3 sales are horrendous compared to PS2, and 360 sales are hardly better than the original Xbox. Meanwhile, Wii is picking up the slack at an amazing rate.
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