That piece of writing makes it sound as if Nintendo are desperate to get a Wii with better graphics out on the market. Why would they? :s If anything, Nintendo have proven during the last few years that they honestly don't care a lot about graphics. That's the entire philosophy behind Wii, an affordable machine with innovative controls instead of endlessly improving the visuals. That's what MS and Sony did, and look where that got them.
Honestly, so far, Wii is the fastest selling console ever, quite probably the biggest success story in the history of videogames. And with the economic crisis and everything... why the HELL would Nintendo want to throw all that away and begin anew with a new, pricier console... :s Does anyone honestly believe Wii will need a replacement in 2 years time? Come on now.
If this generation has proved anything, it's that apart from the elite hardcore snobs, the average consumer doesn't give a flying fart about graphics.