I agree that this genre seems a little ambitious for a WiiWare game, but I'm still interested in it. If it turns out to be fun I'll buy it, thats for sure. When it comes to graphics though, obviously it can't deliver on par with what a retail game would be (one with a budget and a dedicated team that is) but you'd think the devs would be a little smarter with some of the design choices they make..
Say I was in their shoes, obviously I can't pull of the best looking game because of the size limitation of the service, but instead of trying to make the game look similar to what it would be if a full release but scaled back, I'd go for a different visual approach, something to let the graphical limitations slide. What if the story explained that you're not really playing as some sorta space marine but your character and his buddies are going to play some sort of VR Paintball. That would lend itself more to some fun design choices, and be an excuse for not-so-realistic visuals. If that were the case, I know personaly it'd be fun to see moments where the VR images glitch from time to time revealing wire-frames or even stop all together revealing the 'real life' setting you're in. Oh did i mention that your characters could all be mi's? the VR could wear off revealing that your big bad ass space marine is really your big headed mii in cheap 'armor'