Sounds stupid. Yeah, it'll probably come out around that time and it might have HD if that's something people want but those are really braindead conclusions that you don't need a rumor for. That's like "rumor: Nintendo to remain in the console business", a completely pointless rumor with zero news value.
Now if anyone here thinks HD means next gen graphics they'll be disappointed, Nintendo won't do any massive pushes for graphics, maybe throw something cheap in that would still be a big step up on the current Wii but a graphics focus is just pure moneywasting, 95% of what people want from their graphics are done by the Wii already and the remaining 5% are too expensive to be worth it. Expect graphics to be the first thing to get a cut if they want to bring the price down. Nintendo will invest the system cost into technologies that really improve the gaming experience.
If Sony and MS continue on their current course they will get eliminated from the console market and following them is pointless. It's no longer about power (really has never been), just blindly sacrificing everything for more power will just alienate your market even more and destroy you.