It's not like the decision to put the game on the PS3 was met with derision when it was announced in 2006. They thought, like everybody, that the PS3 would rise up and steamroll the 360 and the Wii is a non-factor only Nintendo fans and nobody else would buy (Ha!). Haze for the PS3 seemed like a sure bet, a talented developer making an absolutely gorgeous looking game, for a major player in the industry.
Flash forward to now, 2 years later, the Wii's on the rise faster than the PS2, the 360 is outdoing the original 360 by marginally, at the expense of the collapse of the PC market, and the PS3 treading water and flopping left and right. It's easy to be a Monday morning quarterback here, but in 2006, anybody telling them to not make a PS3 game and instead make a few Wii games was called a Nintendo fanboy who knew nothing. To NOW say what they should and should not have done is pointless because this wasn't what they heard when they announced the game. I know I said that making Haze on the PS3 was a bad idea, and that they should make Wii games. To which that idea was scoffed and shoved into a corner where it could be seen and not heard.
And you're right, the game sucked. So did Lair. So did Heavenly Sword. Do those developers deserve to DIE because of one bad game? It wasn't so harsh on the PS2, and it really isn't on the Wii. However, the PS3 and to a lesser extent the 360, making a game that doesn't SELL (regardless of score) seems to kill you dead.
There also seems to be a weird double standard brewing here, where when a third party game fails on the PS3 (and to a lesser extent the 360) it's the game's fault, yet when a Wii third party game fails, it's the Wii's fault or the fault of their customer base being Nintendo fans (2006) or a bunch of unwashed casuals (2008), despite it's great size.
Anybody really wanting to blame Free Radical or Factor 5 or EA's myriad studios that they just closed might want to read a short story called The Lottery to see what happens when you support a general strategy, and then deride it once it gets personal.