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IMO, it'd be tough to do split-screen FPS controls with the wiimote.

The sensor bar knows where the center of the TV is, but not where the 25% and 75% mark is. And you'll lose some accuracy since you'd only be using half of the sensor bar's ability (roughly).
Also, having extra screen real-estate is useful for controls like that.

The reason Red Steele sucked was because of the controls. I'm sure it's possible, but there will definitely be compromises in doing a split-screen FPS with wii controls.