Wii HD isn't going to happen unless you intend Wii HD to mean an actual next gen console (not a revision)
As for hard-drive, I am not that fussed about it... 2GB would be more than enough for me so either extra flash memory in the box or the ability to play from SD would be more welcome than a hard-drive.
The 512MB you actually get with the system fits about 15 medium N64 games by my estimation... except it isn't truely 512MB because the Mii Channel/Weather/News etc is all included on that.
So if the Wii had 2GB of memory instead of 512MB... you could easily fit every Wiiware game there is curently on the VC, as well as a good chunk of the VC games.








