Once the novelty wore off, the casuals went away, and the "they stopped making quality games" excuse doesn't really fly with me, because most of the motion games in the first place weren't that high quality to begin with (tons of shovelware).
It was a fad. And neither Nintendo or Microsoft could properly evolve the concept either, Star Wars Kinect was MS' big hope to take it to the next level and that was a dud, meanwhile Nintendo hyped Zelda: Skyward Sword as the definitive motion gaming experience and it was not a big hit (relative to things like Wii Sports and Fit or even Twilight Princess). Nintendo Land used it quite a bit too (particularily the Zelda game) but that wasn't compelling enough either.
That and it's simply not well suited to long gaming sessions, which makes it limited in the types of games it can be used in to basically mini-game compilations or dance titles. Many gamers complained about it being forced into games like Donkey Kong Country.
If we're talking FULL on waggle. Some, very low key motion gaming like how Splatoon uses it for aiming works well, but I think the OP is talking about the full-on "get off your couch" Wii Sports/Kinect Sports type stuff.
Motion gaming's future is playing side-kick to VR helmets.
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