This article by MTV's Stephen Totilo is right in line with what I imagined polishing a Wii title would be like: collect data from players as they swing their arms around, then use that to fix up the gestural movements and hit the proverbial sweet spot:
This is going to be the difference between good Wii input and bad Wii input: the amount of time designers are willing to devote to finding out what players, when given a certain instruction, will naturally do. Bad designers will try to fix this by shoving a lot more text onto the screen by way of instruction; good ones will do the above.