apparently they are making an hd wii internally known as 'project cafe'
“The console will include a custom IBM PowerPC CPU with three cores, a GPU from the ATI R700 family with a shader unit at version 4.1, and at least 512Mb of RAM.”
‘Project Café’ will also include backwards compatibility with both the Wii (including all peripherals) and GameCube games.”
“The controller has a six-inch touch screen, a front-facing camera, D-Pad, two bumpers, two triggers and “possibly more,” and can be used as a Wii sensor bar.”