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both?, i'm not really bothered to be honest, some current Wii games seem to be trying to simulate real life motions but i don't see that as the best way for Wii games, i think it's part of the reason for the poor quality of most (not all) third party games.
some obviouslywork well simulating things like Wii Tennis and some other sports....or like Warioware where you simulate random tasks for a short time.

Again this is similar for realistic graphics, they work with some types of game but not all (though developers have had a long time to know what works and what doesnt) but i think a lot of realism that should work is becoming dull by merely being realistic.

can't decide between the two myself, i would say once people get used to motion controls properly that they will help it feel more realistic as long as there is some attempt at realism graphically.
At the moment graphics are doing a better job of realism for the most part (though like i say Wii sports has done the motion excellently) but they can have a tendency be dull, and thus make the game just like a mathmatical problem, ie something to be done rather than have fun with.

All an opinion of course.