They can't change the system too much or they risk alienating the early adopters by making new games that won't work on the old ones. Nintendo is very smart about this and I think the GB/GBC/GBA/DS compatibility history has proven it to them.

I'm guessing what they'll do is include a HD upscaler in the new wii and hopefully allow an addon that'll work with the older wii's.

 No, it's not fast enough.

 Wii is already capable of using shaders, and Nint could just throw in some firmware update to allow devs to ran games on 1280x720 that is not really big deal. 

Nintendo 'could' have some minor graphical updates to the Wii without breaking compatibility but there are serious limitations. The most obvious examples would be that Nintendo could increase the output resolution, increase Antialiasing and Anisotropic filtering, and add filtering (upscaling) of textures; most of these things can be done in emulators without breaking compatibility. About all this would do is make the same games look crisper and cleaner on a HD Television and would not give it the ability to produce graphics like the XBox 360/PS3.

It's annoying to have a company change SKU's constantly over time. Of course, how to handle the revision when one hopes that upgrades could improve Wii pointer accuracy (Never had a problem with it on my set up, though I have at other places) or anything else would be nice, and I do pray they don't do anything stupid by alienating the first 10 million customers with a large change.

Also, biggest franchises historically, or biggest franchises that you call biggest because you are looking forward to them? You don't seem like the Pokemon type, Nonquihote.

 Wired internet connection is already an option (via USB to ethernet)

Adding a hard drive seems like the most likely option for an elite model.  I could see dropping the price of the current one and continue selling it, and having a hard drive version at the existing price point.  There are already people who filled their internal memory with VC games, and it should be something that most things can use internal memory or hard drive or sd for storage.

I also mentioned they said it in the interview. However the key difference is the word some and not all. Whoever the lost they more then made up for. Most of those they lost never went to nintendo since the SNES days anyways.

Yup you see the biggest baddest franchises on the 360 they have been in development since before the Wii was on any gamers radar and definitely before it took off.  These are massive investments and they will go out on the 360 and the PS3. If developers knew how the sales turned out this year you could bet that more than a few would of been done on the Wii but that is not how it is and they sure as hell aren't gonna say Well RE5 is on the 360 and PS3 but RE6 is on the Wii. RE4 was the 7th highest selling game in June with 150K in ten days. The hardcore are not leaving in droves. I can guarantee you if things do not turn around in Japan DQ XI and FF XIV will be on the Wii SE has expressed dissapointment in the PS3(in terms of sales not performance).

Those tens of millions PS2 owners will not jump in at 300, they didn't jump in until the PS2 hit 150. Most of them bought it at a mass market price with an extensive games library that included a greatest hits collection priced at 20 dollars. They MAY jump in at 199 but I have feeling many are already going to the Wii and a few are going to the 360 and a few are waiting for the PS3 to drop in price. However you want to state it the PS3 will not suddenly jump from last to first place in sustained sales because it drops to 300 dollars.

I think this is going to happen in year 4 or by fall of 2010. WiiHD.

Geez, give it a rest people. No way in hell would Nintendo go for a graphicaly advanced sku of the Wii. That would be total bullcrap. I mean, what gives? Some people get to play a better game in terms of graphics because he has the new sku while others don't because they have an older sku of the same system? Retarded idea.

Only enchancment i see possible is a bigger internal hdd.

I dont expect a WiiHD until next gen. What I could see is a Wii with DVD and HDD.

 In order to create a Wii HD they'd have to manufacture new chips, that costs a lot of money, and economies of scale don't kick in that fast, so no