In general, SD looks better on a plasma. However the problem with plasma and videogames is the potential for IR (Image Retention). If you buy a good quality plasma set though, you shouldn't have to worry. (LCD's, while less susceptible to IR have lag issues when it comes to videogames). Just search around, I'm sure you can find a good model.
Also, with something like the Wii I'm sure its just a matter of finding a good picture setting for it...it shouldn't have worse visual quality than DVD and DVD's look pretty good on my LCD (Including my PS2 games)
Depending on the source, SD can only look so good on an HD display. Sources such as DVD will look better than SD satellite or cable because the latter usually has a LOT of compression applied. You end up displaying a relatively small amount of data on a huge screen with a lot more pixels than were in the original source. As others have said before - in the case of bit-starved DVDs or cable and satellite SD - you can only polish a turd so much. The processing matters more than the display tech in this case.
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