Looks like potential Wii owners are going to have to judge the system exclusively based on its gaming (and photo management, internet, weather, and so-on) functionality for the time being. Nintendo Japan has posted a message at the Q&A section of its site stating that the promised DVD-ready Wii won't make it out in 2007.
As reason for not introducing the new model this year, the company cited a need to need to maintain effective production in order to keep up with worldwide demand for the Wii.
This DVD-ready system would basically be just like the current Wii, except with the ability to play DVDs. According to the Q&A, it would have no external changes to the hardware or any other added functionality.
Rather than stating that the product has been canceled, the Q&A states merely that it won't be released in 2007.