I seem to remember that same thread that narfwack was talking about (certainly predates my joining here by some time, but i remember being linked to it from somewhere else). If it wasn't a thread here, it was one elsewhere which crunched the numbers and came to the conclusion that, on paper, the Wii is perfectly capable of doing it, but my guess is that fillrate problems and other issues with the Wii's architecture would prevent it from being practical save in a few situations
As for cutscenes, i think it would definitely be possible. Especially considering that high-def video relies more on disc space than on a devices technical prowess, and very few Wii games really tap the disc space (since the number of dual-layer titles can still be counted on one hand, i think)