Nothing much. None of the major console makers are. And while Sony and Microsoft have managed to slim down their consoles, the Wii is essentially already about as small as it's going to get. Most of the physical dimensions are dictated by the size of the optical game discs. There's only so small they can make the thing.
And really, people keep buying the Wii in droves. Maybe not quite as briskly as a couple years ago, but they're still selling pretty well, so why disrupt the gravy train with a new console until sales start tapering off a bit?
They are undoubtedly working on a successor to the Wii, but are in no hurry to bring it to market. But the Wii is really aimed at a completely different market from the PS3 and 360. It's aimed at the casual gamer, who just wants to pick up a game, play it a little while, and that's it. The PS3 and 360 are for people who are a bit more serious about their gaming. It sounds to me like you just are expecting the Wii to be something it isn't.
has anyone heard anything about Nintendo working on a main console?
i know they have been updating there DS. Expect for the extra wiimote items i have yet to hear anything like a updated system.
it just seems Nintendo isn't trying too hard with the Wii lately, wile the other systems has at lest updated there whole system at least once, Nintendo isnt doing to much.
with the new interactive game play (like PS3's Move) now coming out the Wii doesn't seem like a competitor.
even when i had my old Wii it felt like a updated Gamecube.