If you think to the target renders that Ubisoft Paris released shortly before E3, they were obviously based on specs given to them for final hardware. Problem here is, Nintendo didn't provide devs with hardware that is really theoretically close to final hardware. They shipped bumped up GC devkits.
You notice the differences in texture quality, Metroid Prime: Corruption, Super Mario Galaxy, compared to what Red Steel looks like now. Those Nintendo games are going to be the games to look at to get a idea of what is possible.
So I expect Wii to match RE4 cutscenes, certain cutscenes with higher quality textures, lighting, with it all in gameplay.
Just noticed this on IGN, Ubisoft is backing Wii to the hilt.
http://wii.ign.com/articles/723/723080p1.html