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I think it has to do with that fact that unlike the PS3 and 360 in which game makers are constantly trying to one up each other with graphics, that doesn't really seem to exist on the Wii since graphics isn't one of it's selling points. In fact the entire philosophy of the Wii is gameplay over graphics and Nintendo has pushed that so it's not surprising that third parties have embraced it.

Also the fact that the best selling games on the Wii have Gamecube level or worse graphics probably isn't lost on any third party developers so they don't feel the need to pour money into graphics if the games are going to sell anyways and nobody else is pouring money into graphics for their games.