Whatever Nintendo packs into Wii HD or Wii 2 or whatever, I hope it's enough for Nintendo's key franchises (Mario, Zelda Metroid, Pokemon, etc) to not only be in HD resolutions (including 1080p) but for the actual graphics themselves to be much closer looking to offline CGI. Now I don't mean photorealistic at all, I mean like still Nintendo-esque, closer to Pixar level
(notice I didn't say as good as Pixar, I mean closer to it) with much higher model/background complexity, per pixel (or even sub pixel) lighting, much better image/rendering quality w/ more AA, filtering, motion-blur, post processing, etc.
I don't want just 'Wii graphics in HD'. I won't even be happy with 360 / PS3 level graphics since those consoles were both a disappointment to me as far as graphics -- It seems advancement in graphics & framerate were sacrified for HD resolutions with 360/PS3.
Now I don't expect Nintendo to have a cutting-edge main CPU processor like current-gen CELL or next-gen 32-SPE CELL, or Intel's upcoming Larrabee, but I do expect a major, major leap in graphics beyond GCN/Wii, nevermind the resolution which is a seperate thing.
I'd be happy if the pre-rendered Space World 2000 demos (Metroid, Wave Race, and most of Rebirth) could be done in realtime @ 60fps @ 1080p in next-gen Nintendo games. That would be noticable step beyond 360/PS3 graphics, although would not need hardware as advanced as the high-end technology that will exist in 2010/11/12 for PCs, that *could* potentially be used in XB3/ PS4.
p.s. I think that some version of AMD's Fusion is much more likely to be in Nintendo's next console than Larrabee. I am not saying that Nintendo will use AMD Fusion, but it's not as unlikely as Larrabee.