He really comes off as believing that the Wii is the only suitable platform for this type of shift (though I don't believe he REALLY means that). Large budgets existed on lesser hardware in the past just as smaller budgets can result in an excellent experience on more powerful hardware. I agree with some of his points, but I do not believe the Wii is a good platform for this to take shape.
Also, I think he's a bit off on his Mirror's Edge comments. I don't believe the game was compromised for larger audiences at all. Quite the opposite, really, as the best aspects of the game are unlikely to be appreciated by the masses.
Seriously, though -- Shin Megami Tensei 4 and Mega Man Legends 3 on Wii, anyone? Make it so.
This really just doesn't make sense to me. I mean, I think many people would want to see these games...but why single out the Wii as the only possible platform? He really seems to believe that 360/PS3 release must equal huge budget when that isn't really the case. Again, large budgets games existed on last generation machines.