It adds a safe area border for Wii output. When using the Wii with component cables the image is slightly overscanned on my hdtv. On the WiiU it has small black borders all around, so so you everything and it looks slightly sharper. (I guess it simply line doubles the image to 960p, outputs it as 1080p with small borders)
No other enhancements though, but you do have digital picture and sound at least.
(And you can play Wii games on the Gamepad, but not with the gamepad controls. The gamepad has a sensor bar built in so you can use the wii mote pointing functionality with it)







