Burger kind of nailed it on the head. The wii is so far behind graphically compared to the other systems nobody feels any need to push it technologically. If they are going to make a game that appeals, trying to appeal graphically just isn't going to work when right next to it is something that makes it look ancient. Even the conduit which will probably be technologically the most advanced game on the wii isn't going to look anywhere near as good as even games like Resistance or the original gears of war. The games that have sold well on wii are graphical powerhouses by far and large. So why would they? It's not to show off, if you have a wii then you obviously didn't go for a graphically powerful system, and it's shown that games don't have to be graphically amazing to succeed.

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