theres no reason for it to be HD dumb thread its HD down sampled to 480p+ so your getting effectivly HD anyways and the gamepads screen to pixel count is higher than a lot of HD tvs
Your argument makes no sense. HD provides higher fidelity. If you downsample HD to 480p, yes it might look better than what you would traditionally get as 480p content, but it's still not HD. Not even close. Compare an HD image downsampled to 480p and another that is 1080p or even 720p for that matter. You'll see a world of difference.
Not only is it pointless, its impossible.
The system was designed for a 480p gamepad, not just with fillrate, but in data streaming speed as well. An hd image would not only demand more from the gpu, but the data size being streamed to the gamepad would exponentially increase, and would likely not only need to take more than one report to deliver, increasing lag, but no longer be able to be interleaved decreasing distance from the system.
I wouldn't say it is impossible. Nintendo has designed their streaming protocols from the ground up. We don't know what kind of throughput they get or how much they're using right now. It's smart for them to have designed something that can have its functionality opened up so that, as developers get better with system resources, they have more bandwidth available. Now, Nintendo doesn't typically think that far ahead, I don't think, so I'm not saying it's there, but the fact is that we don't actually know what Nintendo is doing under the hood and how expandable it is.