They're calling it "Wii"
There seem to be two questions generally asked when people first see the name. "What the hell?" and "How do you pronounce that?"
They actually intend for it to be a pun/homonym of "we."
"Introducing... Wii. As in 'we.' While the code name 'Revolution' expressed our direction, Wii represents the answer."
"Wii sounds like 'we,' which emphasizes this console is for everyone."
"Because, it's really not about your or me. It's about Wii. And together, Wii will change everything."
So it's a stupid name with stupid marketing hyperbole behind it.
Everyone knew they weren't going to keep the name "Revolution," but did they have to switch to something so stupid?
A lot of people are upset that it isn't "cool" enough, but i think what really bothers me is that it's just one syllable!!! It's like the caveman console. It _looks_ okay but as soon as you try to say it it sounds incredibly stupid.
People who've been "supporting" the name (usually along the terms "i don't like the name but here's why it will work") have provided things like "google" "iPod" and "napster" as examples of strange names that eventually became household words. However those are multi-syllable things that actually sound like _names._ "Wii" sounds like you forgot what you were doing halfway through the name.
Of course there's also the other homonyms that have already formed the basis for a great number of bad jokes on the net. And some people have started referring to the controller as a "Wiimote," and i really hope that's just one of the jokes and not the official name.
I kinda wish they'd called it the NES5 or N5 or something like that but just about anything with more than one syllable would be an improvement.