@Sebbbi: If one defines shader as: an operation that invluences a pixel's final colour, the Wii/GC certainly has one. What the Wii doesn't have is a set of GPU operations that are compliant with modern shader models. Besides that, Nintendo themselves call their blender a shader unit (see the recirculating shader patent).
You are right in that the Wii HW has limited resources, but the number of separate passes (polygon draws) you require really depends on your requirements. It's not as bad as you make it sound=) For example, you could setup 6 diffuse lights (texture coordinate limited, you need one for normal coordinate and 0 coordinate as well) if you already know they all light the polygon drawn. Only if you want more lights, you need a second pass (or start using EMBM). For some effects multiple passes would be a requirement: you could setup a pass to calculate screen space parallax mapping displacement coordinates and then use a second pass to use those with normal mapping. As for shadow mapping, if you use light attenuation (only 8 bits but still appreciatable) and have the CPU select the proper map, you can project at least 4 shadowmaps in a single pass. Another thing, color and alpha data is processed independently from eachother. So you can setup a stage to perform operation 1 via the color channel and in parallel operation 2 via the alpha channel. So you could, up to some extends, perform normal mapping and shadowmapping operations in parallel.
You are also right that this is nothing new. My intention was/is to find out what the Wii can do and how feasible some of that stuff is. My first conclusion is that Normal mapping is simple to implement and probably performs equal to a XBox (i.e. to do normal mapping on a XBox I assume you require 2 tex reads, a dot3 op, a clamp op and a blending op).
@Deadly: well, it all depends on your fillrate requirements. If a shader setup requires all tev stages, and the game overwrites each pixel ten times it gets hard to maintain framerate. It also depends on the achievable texture quality and the possibility to implement all required shaders to create photorealistic images. But in general, I think most *general* effects seen on X360, can be done on the Wii as well (though, some might be scaled back, such as number of lights). But that is nothing new either, some German company already proved that=). But I'm currently looking into Quake's source to see if I can implement some stuff in there. If that works out (and wiibrew actually runs in Wii mode), we can use Quake to explore the Wii's performance boundaries and perhaps create some mods such as normal mapped characters.