they do. point is, you want low power draw while working at nominal workloads too - remember, wii is a home hub in a sort, not an on-for-a-while-then-off-for-the-rest-of-the-day device. it's a different device paradigm - like, say, you router - it cannot rely that it's gonna be sleeping/be off-line to meet its power budget - it has to be power-efficient while working at full/reasonable loads.
Thanks for the info. Althougth they still have the tech to turn off cores that arent being used, that would usefull .
On a more serius note, this show that they do have tech that could meet that level of power on stand by, and I really doubt that size would be that problematic (wouldnt they sell the Wii if instead of 3DVD cases it had 4 DVD cases (maybe a bit higher to keep the same shape)? I really doubt that would hurt their sales. Also 65nm is right on the conner they could shrink to it before the mass market does have a a change to accept or reject it because of the size (if that is really a problem)) and it this they would still please many "old gamers" that could garante their market more.
I personally think that they are following this path mainlly for "easy and big proffit". (of curse this does have a lot of R&D on the market and follow a well thought plan of action and features, a good proof of this is the channels)