I have a couple of Wii graphics question.

[Sqrl]

 Here is something I posted in another thread a few weeks ago.  That thread was to a related but completely different topic and should answer your questions about some of the stuff that the Wii can do that hasn't really been seen yet.  

 

An example of specular highlights.
An example of specular reflection.
(look at the pretty "wadurrr")
Before Applying Bumpmap	After applying Bumpmap

I also really liked their fur shaders....

 

Is it the most superb level of graphics known to mankind?  Of course not, but it isn't exactly the slouch people have tried to label it as.