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I've always thought the TurboGrafx-16 version of Space Harrier was awesome. The ground hit detection is present. Yes, you can run on the ground and shoot the shrubs without tripping! Hopefully they put up the Turbo version at some point. I love that game.
definitely play it with horizontal wii remote, don't even bother otherwise...and yeah, it is hard to enter your name (try tilting wii remote), and i noticed slowdown on the 3rd level (i think) boss (the one with the statue heads rotating around it, though i can't remember if this occurred in arcade), but by far, this is the best version (i've owned master system, saturn version, and sega ages version- for some weird reason i am a freak for this game- probably nostalgia), even if it is 99.9% accurate, which is debateable.