Ok, so I finally got around to working on the second half of this mod, the video switching circuit. The Wii multi out connector shares the same 3 pins for RGB, component, and S-Video, with the NTSC consoles getting S-Video and component, and PAL consoles getting RGB and component. There are two additional pins that are used to switch between the two options by shorting them together (i.e. NTSC unshorted = S-video, PAL unshorted = RGB, either region shorted = component). The shorting is done inside of the component cables themselves, which is why you can find composite + S-video cables, but never S-video + component. In order to support this functionality, I built an add-on board for the NESRGB that contains a component encoder and a video switching IC. My component encoder might need a little more tweaking to get the colors perfect, but I'm still happy with them (this is the "improved" palette)
Here's what the board looks like mounted on the NESRGB. Ignore the riser wires, that was just to make it easier to remove while I'm prototyping, it will mount right onto the same pins as Tim's component encoder. Also, ignore the floating capacitors, I didn't have any of the chip tantalums that the board was designed for on hand. The physical switch selects between PAL and NTSC pinouts, so you can choose whether you want RGB or S-Video (you can't have both at the same time, unfortunately).