Nope. At the moment it seems games on SDTV are rendered at SD resolution with no benefits at all.The line about Wii being "formidable for 640x480 rendering" really makes a lot of sense, when you consider what X360 can do at 720p.
Isn't every X360 game rendered at 720p and downscaled for SDTV?
I'm not sure I go with Wii being 'formidable for 640x480 rendering' either. If we consider G70 class is formidable for 720p, a formidable for 480p GPU would need to be 1/3rd the power to have the same performance per pixel. Either G70 is 'gobsmackingly awesome for 720p' and formidable is a much lower rating, or Wii's GPU, GC 1.5 according to Eggbreicht, is 1/3rd the power of G70...or the idea of Wii's graphics being formidable for SDTV is just wrong (or the GC 1.5 is just wrong! So many variables!)