I think they (High Voltage) are betting on online multiplayer being a more demanded aspect than splitscreen (which, for these days, seems to be right (at least on HD consoles)). Also, another reason why was to defeat the poor-Wii-graphics stigma, and thus differentiate themselves from most of the rest of 3rd part Wii games.
While I love splitscreen (especially co-op), I think HV made the right choice to focus on graphics for there first Conduit game. If they hadn't, it would probably be much less well-received (assuming it would be received well in the first place, of course). If there is a sequal, I would much prefer splitscreen over improved graphics.
Not that I disagree with you on that the focus on graphics in general has detracted from a probably better gameplay experience, but I think HV's choice here isn't necessarily a telltale sign of what's to come for Wii FPS's, being that this time it was probably more of a necessity than anything else that drove them to this choice.
Okami
To lavish praise upon this title, the assumption of a common plateau between player and game must be made. I won't open my unworthy mouth.
