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I highly doubt it would have sold better on PS3/360, even if it did not by much and this would be negated by the higher development costs.

I've played Madworld and I think it is an O.K game, but that is all.  It is by no means fantastic or even very good.  The reasons why this game didn't sell better, were not that it was on the Wii IMO.  It was the art style (I know 2 people who were put off by it), the length, almost no advertising (I saw none whatsoever in the U.K) and the lack of online.  Hell, even God Hand didn't exactly set the charts on fire and that was on the PS2.