The French site Overgame has an interview with a lead team member working on Red Steel. (Note: the interview is translated through Babel Fish, so don't mind the funny spelling)
I found this to be an interesting question/answer: " The rumours spoke about a power comparable with that of Xbox... I do not have the right to speak in details of what Wii can do graphically. What one can say, it is that on the sum of all that it can do, Wii is more powerful than Xbox. But there are things which Xbox can make and which Wii cannot make." I am going to buy a Wii for sure, so I don't bring this up to try to bash it. I just find it interesting that a developer is saying that from his experience, the Wii is more powerful than the Xbox, even though there are some things that the Xbox can do that the Wii can't replicate. A few weeks (maybe months) ago there was a big digg.com argument where some people were saying they thought the Wii could look just as good as the 360 and PS3, just at a lower resolution. This interview seems to say this may not be the case. It's just nice to see an actual developer setting our expectations on Wii graphics (somewhat better than original Xbox).
No matter what I feel Nintendo is doing everything in their power to get the best out of the Wii. What's even more impressing is they're doing it under the radar. Instead of arguing with Sony and MS. They just go about their business. That's why I'm definitely buying a Wii.
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