The Wii uses anamorphic widescreen, like a DVD player. The resolution is exactly the same whether the Wii is in 4:3 or 16:9, and you set your TV to stretch to the correct aspect ratio. This does mean that the picture is theoretically a quarter less sharp when you're using it in widescreen, but studies have shown that our eyes are better tuned to see vertical detail than horizontal, so it shouldn't really be all that noticeable. Even so, you can always switch back to 4:3 and play with pillarboxes, which you'll want to do anyway if you're playing any classic games.