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j.thomaz said:

So, other then processing power, what would avoid the wii to deliver hd graphs?

There was rumors back in 2007 that the gpu could produce hd graphics. (the story of the drunken guy)



Could the POWER Wii be an upgrade of the OS, allowing the console to push out better graphs for not high power demanding
games, I wonder? What if more memory could be added by some
of the ports (i know they are slower than a standard memory slot, but what if?)?

Mainly the framebuffer.  The Wii's is too small for an HD frame, unless they used a tile-based renderer.  However, I'm pretty sure that developers would have noticed this before now, you can't exactly hide it.

But, from what I know of Hollywood, it certainly has the fill-rate for HD output, so who really knows for sure.