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The only difference a Wii (HD) with Blu Ray would effectively be in game scaling, HDMI support and Blu Ray playback as well as beefed up ram for internet. Now the could do this if they really wanted to. The HD 5450 uses less than 25W as a standalone board so they could use it and its native media decoding capabilities as well as its ability to run Wii games at a higher native resolution.

$200 for a vanilla Wii and $300-350 for an upgraded Wii? Sounds pretty stupid but if they wanted to they could. It'd be a killer Blu Ray player given you get a remote standard and it'd use like 1/4 the power of the PS3 during movies.