I've been really interested in picking up the EEE for a laptop that's quick and easy on the go, I've also been interested in having back up systems which use much less power to offset the high costs of running a current PC.  The Aleutia E1 is the new kid on the block which promises everything contained in the box using under 18watts of electricity.  The 8 watts they show on the page is a bit misleading, you can find the details here:

http://www.aleutia.com/products/e1specs.html

I've noticed that this system is really really pathetic, much more so then competing systems that promise the same environmental footprint.  Most systems use a Via cpu running at around 900mhz to fit within the same power range, this computer uses a 200mhz cpu.  I really don't see the point if you are hampering your system so badly.  A 900mhz cpu isn't too bad when running linux.  A 200mhz CPU guarantee's you won't be able to run any modern apps.  So my question is.  Why haven't any of these low power system manufacturers called up IBM, Foxconn, ATI and anyone else who makes equipment for the Wii and release a low powered system based on the Wii design?  They would need to make a few small changes like add in a VGA port and some extra USB ports, make the ram expandable etc.  But the majourity of what's in the Wii is far better then what's being offered in these similarly priced units.  I'm sure IBM and ATI would love to have another customer buying the same parts, and Nintendo would benefit even more by the scale of economies.  Why haven't these guys done what seems so obvious?

Because Wii's CPU is based on the POWER architecture, which many major applications will not run on. You could in theory use the POWER Linux kernel and port each and every desktop app you needed, but it's easier to go for the standard x86 from VIA. Hardware drivers would also not support POWER, as they are generally proprietary which means you can't port them, period. x86 emulation is possible but too slow for the net gain.

EDIT: Also, each Wii component has a manufacturing contract with such a large volume of units needed that the cost goes down. The EEE PC will sell fewer units (or at least is expected to) so each component costs more. 

Most Linux app's are already available to compile for Power PC cpu's. I don't see that as an issue, the Asus EEE for example gives you an OS and all the most common apps you'd need. They can easily do the same on the Power PC hardware.

Yes I realize that Nintendo has a large contract with large amounts of parts orders on it, but that's sorta my point. Nintendo has brought down the manufacture costs of most of those components. Another manufacturer should be able to buy most of those same parts and throw them into their own box for a few bucks more.

The Wii hardware is all optimised for playing games. Not running general applications and an operating system. Since it's already what $250 dolars? (I think thats the US price) adding extra ram (would probably require a motherboard redesign) + licensing costs + keyboard/mouse trackpad + tft screen the price is going to be well over that of an eeePc.

Would the ATI graphics card in the Wii be capable of driving PC monitor resolutions with any sort of 3d performance? The lowest acceptable resolution I would consider these days (at a stretch) is 1024*768. The best the Wii offers is 480p

 Yeah, all of that too. The Wii is highly optimised for one task: 3D gaming at low resolutions. It is just not designed for multitasking.