We've said it as many others have: Wii's graphical and processing prowess can generally be viewed as a GameCube on steroids. Miyamoto seems to agree in a
"The hardware is basically a GC. We've upgraded our development tools to new versions but, you can still use GC programs as they are. With that in mind, I thought we could remake GC titles for the Wii and modify them to work with the Wii remote so that they're more fun to play." This is not to say Wii won't scale in the graphics department, but logically not as much as the 360 or PS3 will.
Tweaking existing hardware and graphical technology while remaking games is nothing new for Nintendo. They've done it to much financial success and fanfare while entertaining millions in the process. In terms of graphics, the GBA is "basically" a SNES, and the DS is "basically" a N64. Both handhelds have done extremely well. So launch price controversy aside, why do so many seem to make a fuss over the Wii being "basically" a GameCube?
[Update: Part 1 of the interview series explains that this is simply another translation of Miyamoto's interview with Japanese mag Nintendo Dream, the same interview we blogged back in August. Thanks for the correction, Probot.]