1) It can't kill the current model unless the new games don't play on it. there's no reason for that to happen. The only thing people with the old model don't get is HD.
2) Look at DS sales from when the Lite came out and you'll see that many people are willing to upgrade their Nintendo systems within two years. There's only a small improvement from DS to Lite (trust me, I have both) yet Nintendo fans will still pick the new model up.
3) HD consoles are failing now for their price, not their options. Once they get into the casual buyer's range they will pick up. And in two years HD will be everywhere. You pretty much won't be able to buy a TV without it by then. HD gaming will suddenly matter.
Now, I have to question you on a few things:
What makes you think the Wii is any different from the DS and the GBA, both of which got upgraded versions? Seems like a winning strategy so far, since it's made them massive amounts of money and is even the reason they were able to win the war against the PSP.
What makes you think anyone has said Wii demand will decrease because of HD? System sales always slow down as you leave your third holiday which is why Nintendo has been releasing updated hardware for each system to maintain momentum through the third year into the fourth.
Why would the Wii be anywhere near the PS3 or X360 in terms of power? That'd be a complete change to the system. To add something like 720p would take very little yet the difference in output would be enough to see new Wiis to people that already bought the current one. Just like the DSL or GBA
You do not have the right to never be offended.
