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it is last gen graphics, but if it was against the ps2, gamecube, and xbox, the wii would win for best graphics for many reasons.

1. It's CPU is just a tiny bit better than the xbox
2. Games during ps2, gamecube, and xbox only used about 1-2gb worth of memory while the wii is using about 5-6gb worth of memory putting as much details as possible and not blowing up the wii engine.
3. The game engines that were expensive during the ps2 era are now very cheap compare to Unreal Engine 3 so prices for developing these games are alot less expensive than games like halo 2