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I have a 32 inch widescreen 1080i/720p CRT HDTV ... The Wii looks pretty much exactly like a DVD and you don't really notice the lower resolution.

SDTV is usually 480i resolution and often has been highly compressed and is full of artifacts that are visible on large LCD HDTVs; the wii produces higher resolution and lacks the artifacts so it will (likely) not look nearly as bad as SDTV.

EDIT: I'm refering to analogue SDTV ... Digital SDTV (and a large portion of HDTV signals) are all in 480p and of similar quality as the Wii's digital signal.