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The press release pointed directly to Nintendo.com where the announcement displays a brief flash movie describing why the company went with the Wii name, and even more importantly, how to pronounce it. Below is the official Wii explanation from Nintendo:

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.

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