When contacted recently, Nintendo head honcho Satoru Iwata says that he has absolutely no regrets in naming the console Wii as he feels as long as the product is good, the name will catch on eventually. According to him and the rest of Nintendo, the name of the console itself bears testament to the fact that the console is meant for everyone, irrespective of age or sex.
He furthers goes on to say that the GameBoy too received a fair amount of criticism when it was introduced in the 80s, but that didn't stop girls from gaming from it.
According to Iwata, the Wii isn't directly competing with Sony or Microsoft as they plan on offering different and extremely simple games bundled with their "O' so unique controller".
Props to Nintendo for sticking with their guns!
[...] As of now this remains a rumor, and since Nintendo is known to stick to their guns, I doubt we would see a name change anytime soon (ever). [...] 
