Dude...
The 360 is not an Wii-killer and the Wii is not a 360-killer. They are very different consoles with very different merits.
For some people, the Wii is all that is needed for gaming. Yes the bulk of gamers are in their twenties but what about the rest of the people that play games? What about the Teens and pre-teens? What about the older generation that got started with Pong and Donkey Kong? To them they really don't care about graphics and all they want to do is play. The Wii is easily the cheapest console. The 360 Arcade is 279, but wait... if you want to go online you need a HD. BANG! +$120.
You complain about the controller, but you have the same controller as the previous console and the same for the PS3. Does change scare you? This change has brought some phenomenal gameplay from developers, those that actually take time to make a great game. Resident Evil 4: Wii edition is the best version of this game released to date. Trust me, you'll wish you had controls this good when RE5 comes to your beloved 360. The FPS genre on the Wii is phenomenal. It may not have the graphical prowess of say Gears of War, but the controls are actually more intuitive than the arcadic FPS controls that have existed since Medal of Honor for the PS1. In fact the speed and ease of use to play Medal of Honor Heroes 2 is as close as any console has ever gotten to PC controls.
Meanwhile, while I am talking about graphics, I have to say I am appaled by Halo 3 looking like Halo 2 with bloom lighting.
In terms of quality titles that are released, every system has been through the issue. The ps3 is going through it now because developers find it more profitable to port a 360 build to the PS3, although they should do it the other way if they want quality titles on both platforms. The Wii gets a lot of ports from the ps2. They think they can just take a ps2 game, add waggle and BOOM! wii game. That is wrong. It will take sometime before we see a lot of quality Wii titles designed specifically for the Wii. Even Nintendo is guilty of doing these things.
The IR is not useless. It is very simple to have 1-1 pinpoint accuracy with the wii-mote (AKA use it as a light gun). The only thing that has to be done is to calibrate the wii-mote before gameplay. This was done in the port of Ghost Squad which made the in-game crosshairs optional. Sure this makes the game no more different than Time Crisis, but at the total cost of $30 instead of $80.
Not all games require you to constantly point at the screen. Mainly the FPS games. You don't in RE4, that just means you aren't aiming at that moment, and there is no point to aiming constantly because you can't shoot and move. This also goes for Zelda, Mario, raving rabbids, ultimate alliance, the list goes on. For the games that do require it, it is like complaining over optional the six axis controls for Motor Storm when you use them. It is what you bought the game for so use it.
Speaking of cost, I'm not sold on the idea of buying a 360 being a PC owner. The Orange Box for 360 cost $60.... Why? This was only a collection of games, half of which were previously released years ago. I got it on PC for $30. Half of the cost of your version with better controls and better graphics. Also, why should I pay for an online infrastructure? PC games have worked fine for years without Microsoft trying to make us pay for it. And don't complain about the cost of a PC to play this game. For all the money you invested on your 360 plus the crappy PC you are probably using right now, you could have a PC that could play this game, and BioShock, and eventually Mass Effect when it gets ported bug-free....
Ok done with that off tangent rant. Online may be worse on Wii than 360, but at least it is free. Don't like friend codes? EA bypassed it by making its users login through a website to play medal of honor heroes 2 online. This allowed for 32 player multi-player with ranks and users can identify each other.
Also, there may not be any unique wii-titles downloadable yet, but at least they are competent. My friend download Sonic 2 on his 360 and I don't think I've been appalled so much since the release of Shadow the Hedgehog. This is a game from the Sega Genesis, Genesis! Why is it lagging? Why is it choppy? This is inexcusable for a console this expensive. The Wii however is able to emulate the game wonderfully.
As for its own backwards compatibility? I am ashamed for it's price the 360 went for emulation for it's xbox games, causing a lot of titles (including one of my best friends favorite: chronicles of Riddick) to be incompatible. Gamecube emulation is however perfect and I haven't found a single game in my library that doesn't work.
Oh yeah. Did you know that the term Ring of Death is now in the vocabulary of most of the population? When I was still working at target I would get people asking for a game console that "doesn't have that ring of death problem". Most of these people end up getting a ps2 or a DS because the Wii of course is sold out.
In short here are the reasons why the Wii sells:
1. It is the cheapest console
2. It has the cheapest games
3. There are games that appeal to both the hardcore and the casual audience, bringing the entire family together.
4. Backwards Compatibility works
5. Emulated Backwards Compatibility works.
6. Simple controller appeals to a broader audience.
Also as a side note check the link below for the possible future of the Wii. The possibilities of the console is large. The Wii is a unique console that although limited in graphics, can do things the other console just cannot do. I am a proud Wii owner and I think the system deserves its limelight. Get out there and play it more for crying out loud.