The reason why I see this game coming to the west is because of its production values. There is no way that Nintendo is going to funnel money into this project and stretch it over their worldwide audience. I have to be honest, I have not been this enthused for a JRPG since Final Fantasy 12. I see good things happening with this game.
As for why is Nintendo involved with this game, it seems that along with their own title, Xenoblade, Nintendo is attempting to revive the Japanese RPG market. Also, RPGs are not that prolific on their system, so Nintendo might be trying to fix the issue. This is why the Wii 2 should start out with an abundance of RPGs available for launch.
Why would Sagaguchi be involved with Nintendo?