"Do you think the 1st party games like mario, zelda and smash graphics are last gen or would you agree that they are good enough?"
With the exception of Zelda they definitely look better than most if not all last-gen games. Zelda looks nice but its a Gamecube game and therefore it is "last-gen". The problem is if you want to compare graphics last-gen and better are rather subjective adjectives. God of War2 looks awesome and is a last-gen game. I think Galaxy looks awesome, Zelda looks nice, In Smash the characters look great the background is a bit grainy (if they are static the destruction animations are great).
But yes these games look good. As a PC gamer I hate SD resolutions so this is a problem if you have a HD TV. Otherwise games with cartoon-like graphic style look great on the Wii.
On the other hand the Wii really cannot compete with 360/PS3 when a game is in a realistic setting. Uncharted, Gears etc. provide almost movie like graphics that the Wii cannot match. Its definitely not "good enough" in this category. Or take Gran Turismo, a game that lives through its photorealistic graphics which would also not be possible on the Wii.
Offtopic: I am not a Sony fanboy (when the 360 is cheap enough I will get one for Halo3 and possibly Mass Effects and Fable2). I just like good graphics (and as a PC gamer the low resolution of the PS2 was probably my biggest turn-off) and have never seen a mini-game I liked.







