Ever since I've been into computers and read magazines like ACE, which were very much into the subject, I thought it to be cool and the future of gaming. This was later confirmed after I had the chance to play 2 VR games. The graphics were not that hot, and you had to wear a clumsy helmet, but the immersion into the game was the best you'd ever experience.
All consoles have great gfx already, but only few games really manage to really put you into the game. By creating a controller that can mimic anything you can hold in your hands you really get a very big step closer to true VR. Playing tennis, or any of the other sport games are just the beginning. Where the VR sets of 15 years ago would fail was the helmet part. Nobody wanted to wear those things back then and probably nobody would want to wear then today. However the helmets were used to track your movements and these movements are now captured by the nunchuk part of the controller.
Just read this preview, it contains the following about the wii;
"Yes, it might have GameCube quality graphics, but it adds boatloads of a much more important element: fun. All of the hand swinging and gesturing really immerses you in the game."