For less than the price of a Ps3 core ($500) you can get a video scaler that will take the 720×486 pixels (NTSC) signal coming out of the Wii and convert it into HDTV resolutions, 1280×720 pixels (720p) or 1920×1080 pixels (1080i).

The SC-1250 Up Converter is made by a company called TV One. Direct from them you will pay $695, but can be found online for as little as $450, hopefully B&H stocks plenty of them! So for only $100 more than the PS3 premium model ($600) you too can get HDTV for your Wii.

I had looked for other ways to do this, but the only other HD up converters that I could find used a SDI in and HD-SDI out and not many HDTVs have those type of connections. It is meant for a studio or lab environment. High end video capture cards come with HD/SDI ports.

The cost to do this was $1200 just for the two converters needed. One to go from Compoent/S-Video -> SDI and another to go from HD-SDI -> HDMI or DVI. The SD -> HD-SDI converters would another thousand at least. Their websites don’t list a price. I found one from Miranda and another made by Evertz.
This is why the TV-One SC-1250 is your best bet for HD gaming with the Wii. Another reason why this is better than having a PS3 is because you can up convert other video signals like from a DVD player or from a VHS into HDTV. The PS3 can’t do that!

Update: Sales guy from Evertz got back to me saying that it would be about $6,000 for their converter.