It's like me and Adrock are long lost twins, as we always seem to be agreeing with each other. Yes, there are a lot of games that do touch controls well. The key is not to force the issue.
I completely agree with you, Ian and broodwars, that the forced waggle that a lot of Wii games used was an awful design choice. A lot of that, though, was forced upon them by the controller they had to work with (although it doesn't excuse the lack of a Classic Controller option in some of those games).
On a lot of different levels, the Wii's main problem was a lack of foresight on Nintendo's part. In terms of online play, storage, hardware design and controls, Nintendo made decisions early on that ended up severely limiting what the system could do. Before NinSage or whomever criticizes me for being anti-Nintendo, I should say that despite all that the Wii is probably my favorite Nintendo console ever, but that doesn't change the fact that it could have been so much more.
That's why it's comforting to see that Nintendo seems to be learning from their mistakes. Most of what they've done and said so far with the 3DS and Wii U indicates that they've taken the criticism to heart, and are trying to fix those things. The Wii U controller can do a whole lot of different things, giving developers, both Nintendo's own and those of third parties, options. The hardware seems to be a lot better thought out this time around, and everything Nintendo's saying gives me confidence that they really have learned.
I can't wait to get my hands on the thing in two weeks.