My computer isn't beefy enough to handle Dolphin much at all, but my understanding is that even higher end computers have trouble with many games. That doesn't mean that Nintendo themselves couldn't jump into the ROMs themselves, though, and make necessary adjustments to the rom and emulator to get a perfect result on a per-game basis.
My prediction? We'll see certain core games like Galaxy 1 and 2 come out as $30 disc games in HD, much like the "New Play Control" series or whatever it was called (where they shoehorned Wii controls on Pikmin, Donkey Kong Jungle Beat, etc.). Mario's star pointer would have to be either touch screen or analog stick (though tilting the tablet I guess is possible), hopefully achievements are added (or at least the console recognizes a complete game).
My hope would be to see some other, older Gamecube classics like Prime 1, Wind Waker, Sunshine, and F Zero get the same 720p+ widescreen treatment. I'm guessing they'll do discs to help software droughts but they might try discs & digital. The difference this time is that unlike "new play control," people are actually gonna be excited to buy the same thing this time.
