We've seen a lot of posts about these 2 subjects, so I have decided to post my thoughts. On the first subject, yes, the jaggies are very noticeable on the Wii. In particular I was playing Red Steel for the first time about 30 mins ago. I have a regular widescreen TV and It's very noticeable. I also noticed that during moments of increased action with smoke and explosions the framerate drops considerably. This seems to indicate that the Wii is being pushed in terms of power. I have read similar comments about Call of Duty and Need for Speed Carbon. I would think that the ATI graphics chip does support Antialiasing, but this uses a fair bit of overhead. Now imagine this along with games in a higher resolution and you would have some pretty stuttery unplayable games.
I'm certainly not a graphics whore, but I think that Red Steel has really poor graphics and with the jaggies as well make it's really hard to pick people out in the distance when shooting. I'm not convinced that the Wii is suited to these types of games, I could be wrong and this could be down to poor coding, but I guess we'll have to wait and see. I think the Wii is excellent for game like Wii Sports, Wii Play, Rayman, Warioware etc..
In the end I have to agree with the guys who say, if you want HI-DEF next gen graphics you need to buy and XBOX 360 or PS3. The Wii is about the control system and gameplay.