HD gaming wasn't too important at launch of the Wii. Hell it took me about 3 years after the Wii was released for me to get a flat panel 1080p TV. Before that the prices were too high and I settled for my CRT 720p (component). I believe it made the Wii look better compared to the flat panel (jaggies stood out more on flat panel). Anyways HD gaming is important now because the technology is now mass market. Everyone owning flat panel 1080p TVs didn't happen till about 2009-2010. Wii sold 100m+ so I don't think they made a mistake not making it more than 480p with component cables.
Funny you bring DVD/Blu Ray argument considering DVD players were cheap when the Wii released and Blu ray players were cheap when the Wii U released. If you can't drop 50-150 dollars on a player then maybe you shouldn't be buying video game systems in the first place.
Nintendo already tried the Virtual Boy and have backed away from making the player look through huge goggles. They are usually more focused on multiplayer (mainly local) and hopefully have more enjoyment in playing games with their friends/family. VR is single player or online multiplayer focused. There is no local multiplayer in the sense that everyone is starring directly into huge goggles and not paying attention to their immediate surroundings.
