I got the limited edition of the 1st one 2 years back. At that time I didn't know what people were complaining about so much, because I only had a Wii as my main console (lol ok I was a kid back then), but then I got the 360 on my 18th birthday, played Halo and my jaw literally dropped from all the awesomeness. Finally realised what people were comparing Conduit to.
That said, I don't think the 1st one was bad, it was, now that I look back at it; very mediocre. If the online latency and lag issues weren't there, I would have even classified it as "good". In regards to that, its just hard for me to get the sequel given that there are so many friggin great games that are coming out/have already come out that I need to catch up on. Perhaps someday if I find Conduit 2 at a bargain, I might grab it since I bought the Wii motion plus, but never really got to try it, hopefully it actually makes a difference in the gameplay.