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I wouldn't say so. The next Nintendo console will certainly be HD, but upscaling just looks pants there. 2D materials are stretched and the filtering looks poor. The 3D bits too just show off how low-poly the games are (Twilight Princess standing out a mile here).
I think it's too late to just upscale the old titles but yea, now HD graphics can be produced on cheaper hardware and the adoption rate is a lot higher - I can't wait to see what they pull out of the bag next.

HD sequel to Brawl, oh my yes ;).
 
If you want to wildly flail around the living room, but in HD, just wait for Natal or Move. At least they'll be out this year. Although I can see Nintendo being the first to market with a new machine.
 
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