I actually think the Wii-motes controls havn't been used properly except by Nintendo and a few third party developers. Games like Bully, i prefer to use a controller over the Wii-mote because it isn't used properly except for a few actions and mini-games. The last game i brought for my Wii was No More Heroes and although that game is awesome, i was expecting that a swing would equate to a sword swing but it doesn't except for a finishing move and some grappling moves which i can live with.
Also i don't think many gamers want to play games like Call of Duty and Gears of War with a Wii style remote controller, i certainly don't, it seems people have just gotton used to using a controller over a keyboard and mouse set up.
But i think Microsoft does get it, as they can encourage developers of Wii games to port those games onto the 360 and the graphical capabilities of the Xbox 360 could really enhance the experience to be had of such titles. Apparently Rare is also working on the Microsoft remote which is also quite promising as a new Viva Pinata game incorperating a remote so you can actually wack the pinata would be awesome but unless they can duplicate something like Wii-sports and create a bunch of games that use it well, then it will be a waste of money and time.
