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I don't think it's supposed to wrap it up, it's a cliffhanger ending. They probably wanted to keep it open for the second game... but what I didn't like is that they could have just made a different scenario for the second game instead of just leaving him where he started.
Game starts where he gets into town, he goes around helping people the whole time but the story never progresses much past the first 10 minutes when he finds the note. He see's Mei outside his house, and the entire game is him just helping them. The core storyline gets NOWHERE.
The event is not explained.
He never tracks down the areas his wife might have been.
He never finds word of his wife.
He never finds his wife or daughter.
The second he sees Mei he just gives up entirely on finding them... which is really annoying since the entire game is built around him trying to find his wife. The only story progression you get past the initail note are various side comments and the ending cutscene which only shows a person who is most likely his wife crying while watching his videos... which means nothing. I mean he's probably dead, but it doesn't really mean he is and his daughter is completely unexplained.
I'm guessing he suffered some fatal wound shortly before finding his wife. He then reunited with her and died.
I liked the game a lot but the ending was terrible. It was clearly cut short and it was unnecessary for him to die. He clearly could take care of himself so it's hard to believe he would die a short time later. What should have at least been a quick mission to find Henry and then have him tell the protagonist where the hidden survivor camps are so he can find his wife and daughter there is just completely cut.
It dawns on me now that this was originally designed as a retail game, then dropped and picked back up as an arcade download. Maybe that's as far as they got before time/budget was up and they just ended it? maybe in the retail game it was going to progress much longer but they had to either rewrite it, or keep it and end it abruptly?