Well, he only says that it's an updated version of the Gamecube, he doesn't mention anything on how powerful it is. In the quote in the article, that is.

Because now you can surf the Internet in your living room on a huge screen, most people don't know how to do that, and it's easier than ever with the Wii.

As for the DVD player, I'm glad they didn't include one, it costs money, so the console would be more expansive, and seriously, who needs a new DVD player? Everyone has one already, and they're usually much better than the ones included in consoles.

You buy virtual Console games, and other software products with them.