There has been nothing spoken much of Zelda Wii lately, and things seem to be staying that way; however, in a recent Iwata Asks interview there was a slight mention. It was stated that the Zelda development team feel to be under immense pressure because of the graphics in Monster Hunter 3.
Nintendo and the Wii haven’t necessarily been known for being a forerunner when it comes to realistic graphics, but it definitely looks like Nintendo is trying to give us a realistic experience with Zelda Wii. Although I can’t wait for the new Zelda game, if it’s delayed so that the graphics can be improved to be like Monster Hunter 3’s, the extra wait will definitely be worth it. You can watch the trailer for Monster Hunter 3 below: