See? I think this is really the problem right here. Why should anyone have to make "excuses" if The Conduit bombs? If it does bomb, whose fault is it?
Is it somehow the Wii's fault, which provides a platform for game companies to reach potential customers? Or the fault of the people who own a Wii, who would rather buy some other game instead? I'm sure it's not deathcape's fault, right?
If The Conduit bombs, we'll all analyze it and try to figure out the reasons for it, but the "fault" would belong to High Voltage & Sega, right? It will have been great of them to put some sort of effort into the project, but effort isn't always enough -- it doesn't guarantee success.
It seems like you want to prove somehow that games simply cannot sell on the Wii (outside of legacy franchises, and a hazy category of "minigames" which you seem to feel is somehow intrinsically worthless), which isn't true at all. Only the right games can sell on the Wii, because it has a particular market with its own likes and dislikes, but that's a truism for every system.
Is The Conduit the "right game," in the same way that RE4 and GHIII and SMG were the right games? I don't know, and it's not my business to know -- I don't have millions of dollars on the line, the way some investors might. But it is the business of third parties to know, and I feel that is the heart of Reggie's complaint: instead of really applying themselves to the task of capitalizing on Wii's current success and future potential -- instead of making true efforts to "get" what makes certain games appeal to Wii owners as opposed to others -- they're lazily treating Wii as just another system, and in some cases, as an afterthought.
Will Reggie suffer from these third parties shortsightedness? Current sales trends say "no." But the third parties themselves just might.