I think that there could be an upgrade to the Wii. Just not a WiiHD because, really, that would be a waste of time by now.
What i would like to see is a Wii redesign. Not to shrink it but to give it a new, more stylised look to make it more atractive.
But besides the cosmetic operation, it should also come with a hard-drive - like the new Xbox 360 arcade - and the new Wii Remote - which i think didn`t just show up for no reason, but it could be. There could probably be more changes, but i can`t think of anything more.
And the last change would be an online service that could match Xbox 360 and PS3`s (no friend codes, as so many complain), while keeping it attractive to "casual gamers".
With a built in hard-drive it would be easier to download games or demos and movies (netflix?).
But why would be this important?
Wii might have what, 1-2 years left? Even if Kinect and Move succeed Wii will still hang-on simply because, well, it`s Wii. Wii is "the" console of this generation, as PS2 was "the" console of last generation and that won`t change.
But there is something that Nintendo should fear and that is that although Wii is/was pretty big, the casual market knows no loyalty and that means that sooner or later Nintendo`s image will fade with time. And who`s gonna save them? The core gamers.
So, i think that a new Wii with a Hard-Drive, a better remote to match the Kinect and Move (well, a better appealing one), better online service and chance to download games/demos would start something that Nintendo WILL do next generation: attract core gamers. Which Nintendo is already trying to do with 3DS (see games announced).
A change in philosophy NOW could lead them safely into next generation. That`s why a change, in some degree, would only benefit Nintendo in the long term as i also believe that 3rd parties could be attracted to this as well.
