Wii Games look worse If you will sit not far away from the screen. The bigger the screen the bigger the resolution has to be. For example on a 24 inch Monitor there is no big difference between 720p and 1080p but on a 42 inch Screen it is a difference on an 60 inch screen it would be a big difference.
Thats why WII Games look worse on big screens. After a while if you got used to HD Graphics WII Graphics will be even more ugly. For me it was always the same if i started to play the next gen consoles after a while the old gen console graphic seemed to be more ugly then it used to be. That will happen with the WII too. But WII isnt about Graphics if it haven bothered you until now it shouldnt bother you in the future.
Cable: A HDMI Cable is neccessary if you just have the standard Cable than you HAVE TO buy a HDMI Cable because otherwise the Xbox cant output 720p or 1080p so you would have the same resolution you had before just on a bigger screen.
If you never saw before HD Gaming in Action you while be more than just impressed. Its definetly a revolution if it comes to Console Gaming. You cant compare that to SD its just way better. I skiped the last GEN almost completly except some GC Games- I bought my own PS2 2007 ( But more because I was waiting for a train and I was in a electronic market and their was one pretty cheap so I picked it up). I started really gaming again with this Generation after I saw a PS3 on a really gigantic Screen. HD gaming convinced me to spend a bigger amount of time to Games. HD is just a different experience. You should get a Bluray Player atleast borrow you one to see how good Movies can look.
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