If you say so. I'm not so good with pricing, but the parts are quite awesome considering it's a console. Besides, the statement is meant more towards the fact that I don't believe that ANY of the big 3 will jump into this pit of development costs. How much more until the industry implodes on itself? I say: not much.

But that's just the thing.  These are not high end expensive parts and the Nintendo could easily make a profit from the console day 1.

If this is true, Cafe is probably the first system I know to have more VRAM than RAM. Screams fake to me, although anything can happen... Especially because other than that, everything seems somewhat reasonable.

Nintendo is not really the problem here, but 3rd party developers are. Remember all the studios that went belly up this gen? I'm afraid of lots more following them.

Though until you picked me up on prices, I did kinda fear for Nintendo selling consoles at a loss.

So your concern is on software development costs as much as hardware.  A valid concern but as I noted a few posts back, the costs of developement being amortized across 3 (or 4 if you include PC) platforms helps ensure devs/pubs recoup their investment.  To further explain, see below:

Say a major exclusive development costs about $28 million and you get 1 million in sales.  2 consoles may cost $30 million but you get 2 million in sales.  3 consoles cost $32 million and you get almost 3 million in sales.   The return rate at $20 per unit sold would net you $20 million, $40 million and almost $60 million respectively.

That actually sounds very viable. You sound like you're a developer yourself.

Technically yes but no way Nintendo does it. If casuals upgrade to Cafe they would be even less willing to invest in new rehash of Nintendo franchises like Mario Kart or Smash if Wii versions were upscalled.

Also ability to resell same upscalled games as new stuff would be a good gift for third parties who supported Wii.

It is probably a fake but, unlike others, I don't think the Blu-Ray is too far fetched. I don't think Nintendo have a problem throwing some money to the Blu-Ray disc association, even if that means giving Sony some of it. I find less likely is the inclusion of a hard drive. I don't think Nintendo want to confuse its customers by releasing different SKU year after year. I could even go with the possibility of attaching a hard drive as an accessory but not one built in.

Don't you think they'll even offer a decent upscale with some anti-aliasing maybe for Wii/GC games?

I'd be disappointed if they didn't...

They could just leave it with the capacity they use at first. Wii's internal memory wasn't upgraded, so if there was a 320GB HDD in the new console I see no reason why they couldn't leave it at that for 6 years.