If you think about how NiGHTS is played then there really should be no concern over graphics. You are seriously never that close to the character.
I think we are all still stuck in this screenshot = graphics mindset that I'll admit is hard to break out of, especially on the internet and double especially in this so-called HD-era. The game hasn't been seen in motion, which is far more important. (especially if it is running at 60fps, then the graphics would actually be quite impressive.) I learned this in the year 1997 when I saw screenshots of F-Zero X. I thought the game looked ugly as hell and was severely disappointed.

I mean COME ON. The game-pundits of the time went all over it, saying it looked worse than wipeout XL

and a clever one was actually able to use this as a reason to say the PS1 was more powerful than the N64 (You'd be surprised how often this gets said, even today. Market Leadership is the best steroid)
But then I saw it in video and was duly impressed by the 60 fps framerate. While not as detailed, getting it to run at 60 fps is no easy feat. In motion this game shat all over Wipeout, leaving a charred husk.
A more recent example would be Mario Hoops on the DS. The Screenshots were quite assy, but the final product is absolutely gorgeous (particularly the airship court), looking better than a great deal of PSP games, IMO.
And here is the crux of the matter. I just said IMO. Graphics are becoming ever more subjective to the end user, and you will never know exactly what everybody feels about graphics. I showed Nights, Dewy, and Gears of War to a buddy of mine here at college and asked him which one looked better. He said, in order, Dewy, Nights, and Gears of War. I didn't expect him to rank Gears of War last, so I asked him why. He told me he thought Nights and Dewy had more going on the screen and more colors. So then I asked "But how can you possibly think Nights looks better than Gears of War? Gears of War has X many polygons and effects and-" He interrupted me by saying "You didn't ask me which game had more effects. You asked me which one looks better."
Graphical advantage doesn't matter in the long run. You can throw any screenshot at me, proving the graphical superiority of X product, which means X product will beat Y Product, and I can dig up several N64 screens where 3-D was being pioneered vs. PS1 games that dared to be 2-D in a 3-D age. Or the N64-ish launch titles for the PS2. (Madden in particular) It just does not matter as much as it used to, and even THEN it didn't matter much.
P.S. Pittbboi, stop looking for a "showcase" for Wii. If you really want graphics that badly, the 360 is that way. Have fun. Seriously, you will only be disappointed, which is fine, I don't care, but then you spread out your grief to the forum, which I don't like very much at all. Let go of graphics. You will be a lot happier, but more importantly,
I will be a lot happier.