While quality games sometimes don't sell, I agree with his sentiment: "... if the game doesn't sell, we did something wrong." If a quality game doesn't sell, it's simply because the developers didn't tailor-make it to suit the user base.
Among the people who play the Wii for more casual titles, games like No More Heroes and Madworld won't sell well (and they didn't). Those games sold because more 'hardcore' people bought them. The problem is that most of those people have already resided on the 360 and PS3. It's not impossible to pull them away, the developers simply have to give them a compelling reason to.
If the Nintendo brand games haven't done the job then the third parties have their work cut out for them. Glad to know this developer at least partially understands that. =]
The BuShA owns all!