I think it will help to get the big budget titles.
However, I think it will get lots of support as far as casual, on-rails, spin-offs, new-genres, puzzle/hand-eye coordination, etc even if it levels off around Gamecube level (which I don't think it will). Also it can be a place for smaller developers to develop "big" games because it is cheaper to make them and there won't be as much big game competition.
I also see Wii becoming the place for JRPGs like the DS has, smaller or diverse companies can't compete with the larger more focused Square-Enix on the HD consoles. Square Enix will still dominate JRPGs on Wii, but Wii will be more competitve due to lower dev costs.
(/fortune telling)
(EDIT: I didn't see that bridge on the way in...)
I would cite regulation, but I know you will simply ignore it.
