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tk1797 said:

The Wii does not have Shader Model 3.0 and it doesn't have the power to run it, but it can produce custom shaders with the TEV that look almost exactly the same but have no name other than "custom". You can see this in Super Mario Galaxy. Basically all you can do is look at the game and ask yourself if it looks as good as high level shaders in other games, I'm sure the answers will vary. Mario Galaxy definitely has the best shaders yet in a Wii game and many people from various sites have said that the game looks so good that its on par with many Xbox360 games.

The Wii also is capable of the Next-Gen Motion-Blur that is so nice in games like Gears of War and Lost Planet. It remains to be seen how much of this effect we will see in Wii games if it is being used with other effects turned on.

So basically the Wii can look very similar to the Xbox360 in terms of graphics in low-res 480p when a game is made by a developer that actually makes the game knowing the Wii's strengths. You can't go into making a game on the Wii thinking that its a PC or an Xbox, because if you do you won't be able to make games look as good as you want. The developer willl come away thinking that the Wii just isn't capable of doing things like Shaders, Normal Mapping, Motion-Blur, detailed textures and Bloom lighting-when it absolutely can. I'm not saying the Wii will look exactly the same as 360 in the future, but I am saying that we haven't seen what the Wii can go graphically by a long shot. The system is capable of every Next Gen effect out there, maybe it can't do all at once but it can do them all to a lesser degree at least.

 For all those Wii haters out there:

"The system is capable of every Next Gen effect out there..."

 take that loosers