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bmmb1 said:

The sensor bar on the Wii doesn't keep track of anything, it is the Wiimote that contains the camera and keeps track - the (misleadingly named) sensor bar contains the reference points... So there is no problem keeping track of 4 players.

As to most people (at least those who own a Wii) only playing at 2 players, I rather doubt that, especially in the case of games like NSMBWii.

I know, hence the quotes.

I was thinking that in a scenario of "gladiator fighting" more than 2 people would get in each other's way or block each other's Wiimote line of sight.

I don't know about NSMBWii, but i do know that 2 people playing Wii Sports Tennis is plenty to fill in the space in front of the TV.