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HappySqurriel said:

The entire business model of most console and PC hardware manufacturers, as well as the business model of most third party publishers is centered around the need for newer "better" graphics to sell their products ... Those that refuse to see the merit in a product like the Wii are rapidly going to go out of business because they can not see outside of the tiny mental-box they've trapped themself in.

There are many companies that makes HD games and are very successful at it.  Publishers go where the money is and in my opinion it's either budget or regular priced casual games for Wii or hardcore games for HD consoles and PC.