Well if you read the comments in context and also how Broodwars summarized it, he was referring to the RAM in both systems.
I do think it was an underwhelming amount of ram for a current generation system to have, even if it wasn't pushing HD graphics. With the price of RAM being cheaper than ever at the time the Wii came out, it didn't really make sense for Nintendo to not spend an extra $1.75 on bumping the RAM upto measly 125mb total so there is room to push the systems capabilities instead of fight against it's shortcomings.
But beyond that, even with the much smaller amount of RAM, the Wii is still far more capable graphically than the iPhone, and the next DS should be on slightly above par when compared to the GC so thats what the iPhone will be compared against in the next 24months.