Hmm, there is no potential in Wii. I mean normal games with "modern" graphics and so on. I just can't imagine playing in Red Steel or Wii's Far Cry when there are Gears of War and Resistance on the market. Wii is weak already - what would we say in 2008. This is good for girl's parties not for playing real stuff
Again... there will be games with great graphics on Wii, at least Metroid Prime 3, Super Mario Galaxy and Umbrella Chronicles. It's just a matter of optimizing the code. Think about Resident Evil 4 on Gamecube, Wii is capable for twice as good. If you want superb graphics, you have to have an HD-TV to get the full effect of HD-games. I just don't think average people will pay thousands of dollars for super pretty games. Maybe in 10 years the HD-TVs will be in majority, but for this generation, I think Nintendo made the right desicion conserning profitability.