Lots more graphical power isn't a major concern. The general trend over to using HDMI for everything that connects to a TV, however, could do with looking at. My A/V receiver is converting component to HDMI for me, but most people don't have a big A/V receiver like me. Or, for that matter, a wish to purchase the 3rd-party component leads - My Wii is the only one I know that isn't running on the out-of-the box composite wire.
Particularly in Europe, where I don't think I've ever seen a TV set have more than one component input, a hardware refresh that adds a HDMI input (even one that just outputs 480p) would give the vast majority of people a huge improvement in image quality and convenience without breaking compatibility with current games. Coupled with some anti-piracy refreshes to persuade people to buy games again, and you're sorted.