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I have a 720p Sharp Aquos with component connection and can clearly see the image is a blowed up 420p image. Oh Yeah it sharp alright, all those big jagged edges. (sharpness really bring them out) It's the same with playing PS2 games on a HDTV, HDTv really shows PS2 it's age like running an old low resolution PC game on a up to date PC monitor.

The problem is those jagged edges are there on a SDTV also but they aren't as sharp nor blowed up (not as noticeable) like they are with a HDTV.

 Another thing about SD is how quickly you loses details with increase distance. Blow this up on a 42" make it even more noticeable. 

So Iyou could say it's not the wii but the game's low resolution.