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Gnizmo said:

 I have to assume its because they wanted a different game. "Cheap cash-in" has simply become the default insult for any Wii game. Anytime a game is announced for the Wii there is a collection of people screaming cheap cash-in simply because they don't like the idea of the game. I seem to recall people saying de Blob and Boom Blox were cheap cash-ins as well.

 

It's a cheap cash in because rail shooters are fast and easy to make, on top of that the majority of RE fans would much rather have a third person survival horror than a light gun game.