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My TV (Sony SXRD) already upscales it. The issue is not spreading the image across more pixels, the issue is having more discreet information for each pixel.

If the USB box had some sort of video card in it, and the Wii game took advantage of that video card by writing code for a 720p display, then you might have a better looking game. The problem is the USB does not have the bandwidth needed, and no one would by it.

Just get a PS3 or 360 if you want HD games.

The Wii looks great on my TV by the way. RE4 is the only game I have played where I was disappointed compared to my HD consoles (I have both the PS3 and the 360 as well). Even GC games like Super Monkey ball look great on the Wii with component cables.