Yeah, not only does it not, but there is actually evidence that the video quality on these lower resolution games is generally worse than playing them on intended hardware, especially in the case of GC w/ Component Cables (or RGB Scart) vs. Wii U through HDMI.
480p is the best you're going to get. It's also recommended that you manually bring the resolution of your Wii U down to 480p when playing GameCube/Wii games so your TV can do the upscaling, since the upscaling of the Wii U isn't very good at all.
Personally, I don't notice much of a difference between a Wii game on the Wii and a Wii game on the Wii U.
I agree they look a little ruff . But I think they are exactly how they was in the GameCube Daze .. We are just used to . Higher quality these days .. Lacius is right though change your settings 1st on the WIIU to 480p & both the wii1 & GC games looks better... ( we use a HD projector so Its really noticeable ) ...
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Or when your player dies, you can say in code, if enemy exists, do nothing, but if enemy does not exist, then create enemy at certain spot. (This would be a pain tho for lots of emeies)