I hope you're wrong on this. Such an approach would be insanity. I enjoy my Wii, yet look with envy at the visuals, sound, and online play of the PS3 and the 360.
And since I don't buy Microsoft products (personal principle), and Sony have demonstrated an epic level of buffoonery in this console cycle, I feel slighted of options. I'd love to see a Wii HD, but I fear that you're right about Nintendo milking mediocrity as long as possible.
I'll probably end up with a PS3 slim at some point, but with serious reservations. Sad that the only player I support in this fight (Nintendo) is sticking with the "good enough is good enough" approach. Can you imagine Super Mario Galaxy in HD? I can now:
http://www.gearlive.com/gallery/category/C133
Too bad it's just a hypothetical.
In the case of Microsoft and Sony, in the
VERY long run apparently.