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This is what Nintendo said about the name change (The Wii was originally the Revolution):

"Introducing ... Wii. As in "we." While the code-name "Revolution" expressed our direction, Wii represents the answer. Wii will break down that wall that separates video game players from everybody else. Wii will put people more in touch with their games ... and each other. But you're probably asking: What does the name mean?" "Wii sounds like 'we,' which emphasizes this console is for everyone. Wii can easily be remembered by people around the world, no matter what language they speak. No confusion. No need to abbreviate. Just Wii." "Wii has a distinctive "ii" spelling that symbolizes both the unique controllers and the image of people gathering to play. And Wii, as a name and a console, brings something revolutionary to the world of video games that sets it apart from the crowd." "So that's Wii. But now Nintendo needs you. Because, it's really not about you or me. It's about Wii. And together, Wii will change everything."

I got this off Joystiq, and I give all of the credit to them for writing down what Nintendo had said.

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Q: Why is the Wii called the Wii?
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