gpu isnt the problem, resolution can be increased by simply decreasing scene complexity. The problem is that a larger resolution is still a bigger data size even AFTER its finished and rasterized.
The problem is hardware, specifically the wi-fi out, which is custom made to output a precise packet size, interleaved, at unprecedented speeds (way, WAY faster than a ps3 or 360 controller. Faster than a tv can display the image....) Simply De-interleaving the data can increase report size by 2x, (still not enough for hd) but.... will cripple signal distance to a few feet.
They would need to change the systems wifi out for an hd gamepad.
Again, we don't know if they've already accounted for that packet size in the design of the Wii U. Odds are, they haven't, but it's still possible that the packets they've been sending for the current titles are not using up all the bandwidth that their WiFi protocol is capable of.