Reggie sure did say a whole lotta jack and **** in that interview.
Typical Reggie. I don't know why journalists bother having interviews with him, because it's not like he ever has anything truthful or insightful to say. You could replace his smug, condescending face with someone reading a list of Nintendo Talking Points and get just as much out of it.
Will the Wii U allow Wii games to be upresed?
Being a HD console will the Wii U enhance the visual quality of certain Wii games?
You mean upscaling? There are DVD players which can upscale, so I guess it would be possible. Would Nintendo do that? Well, if it raises manufacturing costs by even $5 my guess is probably not.
I think it's a pretty safe bet that the Wii U will upscale Wii games, as otherwise all Wii games would display in a small window on your HD TV (their native resolution). The 3DS already does it with DS games, with an option to play the games at their original resolution without the upscaling.
Upscaling is a software process, not a hardware one, and all it does is increase the size of an SD image to the resolution of your HD TV (with one or more filters added on to smooth the image and make it look more like the original). An upscale will never look as good as a game made for an HD resolution or "HD remakes" which have had new models/textures created in HD to look better, but I think you'll find the end result better than you'd see on Wii in SD.