Wii HD stories

Nintendo's set to announce its Wii successor, codenamed Project Cafe next month at E3, but that hasn't stopped the rumor mill from speculating on what features the controller will have. Besides a six-inch touchscreen, the new controller is now said to have a camera.
This is so sad. Gaming blog Kotaku has it on good authority that Nintendo's next console, the Wii HD (tentative name) will not include a sizable hard drive in the same line as Sony's PS3 and Microsoft's Xbox 360 consoles. If true, games on demand will be out of the question on the Wii HD.
Concrete hardware details are drifting in concerning the Wii HD. The new Nintendo console is rumored to have a controller with a touchscreen and dual analog sticks. There is also said to be an updated Wii Remote and Nunchaku combo as well. Aside from the controller, we don't know squat about the console. IGN says it does.
Calm down, calm down! Yes, we know the Wii HD is going to be announced soon. And yes, we believe that its controller will sport a touchscreen, but how will the games look? It'll be Nintendo's first HD console and supposedly more powerful than the PS3 and Xbox 360. And hopefully Super Mario's world will look as lush as this fan-made Crash Bandicoot demo.
The Wii has never been the most powerful game console out there, but these days its chunky, standard-def graphics are looking worse than ever. Could it be about time for Nintendo's next-gen system? Kotaku seems to think so.