Sitting Still

In 2010 PS3 and XBOX will have motion control capabilities to "match" the Wii.

Consolemakers prep for motion control battle

Nintendo's rivals are prepping for a major battle next year when they plan to take the motion control fight to the Wii.

I highly doubt Nintendo is stilling still without any plan of action.

Since the Wii lacks HD capability, announcing a HD (720P to 1080P) refresh of the console would put them on par with MS and Sony. 

Nintendo must balance between choosing what technology to use after four years of moore's law driving costs/heat/size down (2006-2010) and disruption caused by designing a refreshed console to use the new technology.