Kwaad, really, stop making a fool of yourself.
480i to 480p never was upscaling.
Upscaling is, for example, taking 720p to 1080p, and yes, some true HDTV sets do that.
A DVD is stored in progressive mode, in case you didn't know. The information to make it output 480i (yes, it's more actually) is stored in the files, what we call the 3:2 pulldown or telecine for NTSC. Which makes 5 images from 2 frames.
And yes, 1080p is not recommended for sets smaller than 40 inches, for several reasons. One of them is that you won't see the difference, or it's common size of LCD, which have a poor image restitution quality with several image artifacts.
Also, you're wrong that people buying sets bigger than 40 inches don't care about cost. RP HDTV, the DLP ones, are very cost effective, and you have sets below 70 inches (52').
You talk about games like they are massively parallel applications, which is not true. Remember that a traditional NVidia GPU makes the final image, so even graphics can't be massively parallelized. As to upgrading it, this is not a PC. As soon as one console allows that, it becomes too complicated and will quickly die.
Thinking the Wii is already optimized is delusional, bordering to nonsense. The Wii is barely used by most games. When you see the lowest quality game is at least the quality of RE4, then you can say it's mastered, not even optimized yet.
As for your AMD rant, it just shows how clueless you really are.
On server loads, AMD is better, thanks to its design. You think your desktop/games benchmarks mean Core 2 Duo is better for everything, or that these are relevant on servers ? So yes, AMD are still better than Intel on some server loads.
Right, think of 480, 720 and 1080 standing for a resolution. The I and P stand for the refresh type. So if you stay with the same resolution and just change the refresh type, there is no upscaling going on. Yes DVD's include information for both 480p and 480i, and are made with 480p in mind, and only include Interlacing information for compatibility reasons.
Right on with the 40 inches or larger for 1080 resooltion as well. Honestly I have no seen a tv smaller than 40 inches that supported 1080, so I do not have first hand experience with it.
Kwaad, the Wii looks great on anything you put it on. This includes a projector, that stretches the image on a wall way past what it was meant to be showed on. I often question whether you have a brain let alone the fact that you seem to not even own a Wii or even have played one the way you talk.