Operation Rainfall gave Xenoblade and The Last Story way more exposure than any marketing strategy could have ever hoped to provide. If you tell people they can't have something, they'll want it even more. I have my doubts that either game would have sold anywhere near as well had Nintendo of America just released the games like they would have any other title. I don't think it's fair to say Reggie or Nintendo of America were 100% wrong about the sales potential of the games. I can't speak for anyone else, but I probably wouldn't have bought Xenoblade right away had it come out like 18 months before it did. There would have been no urgency to do so. I had the game since April and I'm like an hour in.
The potential fallout of Operation Rainfall resulting in good sales could be positive or slightly positive but still kind of negative. At best, Nintendo of America takes a chance and releases similar games on Wii U without delay. They may or may not sell without the support of an entire organized fan movement. At worst, they become download only titles which sucks for people who prefer physical media and don't want to buy extra storage for the game. In either case, we will most likely avoid the clusterfuck as it was on the Wii and will get these games in some way.