you're kidding right? No one can match Square man. They're like the GOD of graphics. You can't even attempt to match Square against some 'engine' on the Wii, ( because they'll most likely blow it apart).
apart from in game graphics square are really far behind guys like Crytech, Valve, 2k etc etc. (Heck let's face it Crysis in game looks more solid than Square's cutscenes *_*)
Dudes this isn't meant to be like "WOW WII IS A TECH POWERHOUSE". It's meant to be "we can now apply these four year old effects to the wii, which people didn't think possible". Like I mean it's not gunna be able to compare to £2000 GAMING RIG RUNNING CRYSIS ON FULL RES. For console graphics (heh, imagine me takling down when I use the words console and graphics in the same sentence... like the dirt beneath my feet) I guess it looks ok, like it can hold it's own against
average PS3/Xbox360 title. For being a wii demo, it looks very good (the absense of cliche big eyed cartoon characters of course makes it look somewhat better than it's competition... let's face it)
In game with blinding amounts of bloom, shaders creating random smoke to obscure shit and such it'd probably look low-end current gen. Which for the wii is very impressive, you can't really deny it.