If slashing things from a first-person perspective sounds familiar, it's because Red Steel attempted the very same thing. The upcoming Dragon Quest: Swords boasts a similar concept as its primary gameplay mechanic and eventually, LucasArts will get around to making that Star Wars lightsaber game.
The fun parallels between swinging the Wii controller and swinging a sword essentially demand that such games be made, but just like with any other console, we could eventually face a flood of me-too titles built around the same, unchanging concept. Even on a system that encourages innovation, game developers face the danger of lapsing into a lazy genre trap. Is the "guy with two guns" game any better than the "guy with a sword" game?
(And where's the "guy with two sticks" game?)