I think HD graphics would be a bad idea due to how expensive they would make both the console and developing games for it. However, I would've probably liked it the Wii was capable of running the same level of graphics the 360 and PS3 can do on an SDTV. That would still be lot cheaper than HD graphics, right?

The ability to use USB memory for a variety of stuff, more sensible friend codes, and not being region locked would've also been great. Luckily most of these should be fixable with a software patch if Nintendo chooses to do so.

A built-in ethernet port? I know that WiFi is supposed to be the rage now, but it's very strange that they didn't include one.

The only thing that is wrong the Wii in my opinion is the louzy storage space. 512MB is laughable, I have save games for about 10 games and a couple of VC games and it's already full. And Nintendo wants to add a demo channel and a WiiWare channel? Get real, it doesn't work that way unless Nintendo decides to add HDD support. I know the Wii supports SD cards, but it's a real bitch to constantly swap games between flash memory and SD.

That only Nintendo games sell on a Nintendo console :P

 I want to see more third party games with real effort for the Wii, but I have a feeling that's going to happen.

Oh, and more storage space.  My VC games are taking a lot of space real fast.

Probaly some type of built in dvd or blu ray

Actually, it would be the opposite: HD only with current Wii graphics (textures, polygons, etc.) would be cheaper than better textures, models on SD.

For me it would be these:

-DVI/VGA out  (almost impossible)

-720p, at least in the browser (likely with a firmware update)

-More USB functionality (VERY likely)

-Standard/easier online friend system (unlikely)

-More media playback functions (from SD cards) (very likely)

-The aforementioned GC savefile support

That's all. Only the first thing would need radical design changes, so it's impossible... unless they devise a component-to-DVI :) 

I'm not sure this is possible without changing the hardware, there are probably some chips which would have to be upgraded for the Wii to be able to output 720p graphics.

Tits. Everything be better with tits.

That and just more internal storage space in general. Be all I really need. 

Nope, nothing would need to be changed, the components are enough for HD resolutions, just like PS2's, GC's and Xbox's. Just as the 360 got 1080p with a firmware update.

At what framerate? That would be the problem, that's why I say "at least in the browser".