@Helios
Actually the higher the resolution the less jagged is the result. You're thinking about upscaling a low resolution image, I'm talking about rendering in HD. It also has the nice sideeffect of providing MSAA for SD, so even at 480p the image would be better.
As for development costs, I can't see your point. If a developer wants to spend 40M dollars on an HD Wii game and then fails to do profit, that's their bad business choice. Same as if today they spent 40M dollars in developing an incredibly niche RPG on 8 DVDs, and then it sells poorly. How would that influence the developers who decide to keep spending 10M and make money? The Wii proved that it can sell enough of those visually simpler games to its owners.
The only reason to cut HD would be if taking advantage of it necessarily meant higher costs. The emulator rendering disproves that: there would be some free added value for software developers if Nintendo made a different choice.
