No matter what, I see most people have a big problem with graphics, and always come back to "graphics". The ONLY complaint I see about the Wii is graphics. It's rehashed differently every time, like "lacks power", but it's always about graphics. Perhaps some day, people will realize that graphics are not so important for a console. If it was, PC would have killed consoles a long time ago.
It's telling too, that people talking about graphics describe it ("jaws dropped", "beautiful scenery", "don't look like crap", ...) like they were watching a movie. But games are not movies.
People don't buy a console to be amazed at how it looks, but to have fun. Being amazed by graphics is not the core of a game. That's why handhelds sell, and that's why the Wii sells.
I don't know if the Wii can sell as much as PS2, and I'm part of those that believe it won't, because it's more reliable than a PS2, and I'm convinced a large portion of all the PS2 sold broke and were replaced.
As for 3rd party unable to make good games on the Wii, then it means they won't be able to make good games on the other consoles as well. It's pretty telling when people say that. They mean 3rd parties can't make good games, but the games then become magically good because they're on a more powerful console. Sorry, but that's delusional. If a game is barely good, better graphics plastered on it won't make the game any better.
People that still are blown by graphics have a hard time understanding that graphics wear off FAST.
No game blow me over graphics, and I'm a casual gamer. Actually, I shake my heads everytime I see reviewers or players amazed at a game graphics, like Gears of War. I realize some hardcore gamers (I suppose those that love shooters) have a very biased view of what appeals to casuals. Graphics is sure enough not a selling point for casual gamers, I'm convinced of that, so for me, thinking that better graphics are going to allow the PS3 or XB360 (which still has the lead) to catch up is delusional too. When HDTV really start to sell based on their quality, rather than their form factor, then I'll start to believe graphics are important in games. But I'm sure it's not gonna happen in the 5 newt years.