check out the trailer to red steel, which is actual gameplay and not cutscenes or prerendered crap. i think the animation looks super fluid and the graphics look very very nice. and this is only a 1st generation launch title that is still 6months from completion. i think wii games will have some awesome graphics. of course it wont be able to match ps3/360, but i still think its gonna be a nice leap from past generation stuff.
look at the e3 trailer: