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Kyros said:
developers produced games where the Wii was the "Target" version, and they had higher definition textures and possibly higher detailed models for the HD console versions, the development costs would be much more in line with what the games' sales could support


No it wouldn't because the sales of a PS360 game that looks like a Wii game would be ~ 0. Making worse graphics is always possible you don't need a Wii excuse for it. Nobody does it because there is something called competition.

 

So, you're basically saying that a large portion of developers should abandon the HD consoles because they couldn't possibly produce games at a more modest budget and still turn a profit?