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It is a fine game, well executed, and high quality.  However, people don't play a game just because it is well executed and high quality.  It has to appeal to enough people to give them a reason to buy it, in what it is about, so it is intrinsically appealing.  One can argue that it was on the short side, and also the enemy mix wasn't as varied.  It is also possible to think the horror genre, or whatever else people want to consider Alan Wake to be part of, doesn't have a huge draw.  Because it became ammo in a console war used by XBox partisans who set the bar real high, doesn't mean the game would have millions and millions of sales.