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Look at the biggest sellers on the HD consoles. The developers are forced into creating games with the best graphics. imagine if Killzone 2 looked like The Conduit, it would have died at retail with maybe 50,000 units at best. Sure it would have been cheaper than what KZ2 was but the same game on Wii would be a million seller.

It's ok to say HD consoles give flexibility but it's not realistic.. HD gamers are just that, HD gamers and they want the best graphics, something you don't get with Wii and aren't expecting when you buy a Wii game. Developers could of course release a game on 360 with lower graphics but they just don't sell.. So its more of a risk than spending the same budget on Wii and getting a top notch game out.