I think W101 looks like a good game, but it had everything going against it. If it had released on all formats inc PC as a downloadable game at a $15 pricepoint I think it would have done well. But a quirky game like that trying to sell as a full £40/$50 release on a very small install base? I don't know what they were thinking.
I love games like this, but you have to be somewhat sensible when you choose your release formats and price.
The game is funded by Nintendo (and they are the ones that will lose money on this). Those multiplat and PC could never happen. The game would never have happened without Nintendo.
With that said, i agree they should have priced it as a budget title.