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What is the reason for HVS fanboy love? The Conduit was fun but had problems. HVS makes very mediocre games, so why in the world would Nintendo buy such a company? The only thing I can figure is that folks here are investing more in what HVS says than in what they do. I can understand that to a point because they seem likable enough, and their listening to fans seems to be unusual these days. But in the end, it's about the games that are made.
Bungie had produced some very high quality games in Marathon, Myth, and even Oni. Microsoft was jumping into the game console market, so buying a developer made some sense, even if a risk. Nintendo is in a completely different spot. If anything, they need third parties to be successful.
As for making the Wii a shooter platform to compete with the 360, forget it. The DLC limitations, the horrible friend codes, the inability to see friends' status outside the games, the problematic Wii speak, the perceived and real server issues--the Wii has too many issues for it to gain significant ground. That said, can the Wii have a viable FPS community? You bet.
In fact, though I don't think Nintendo is that interested in FPS, I think they need to encourage and support it for the simple reasons of understanding what it takes to have successful online gaming (which I think is the heart of modern FPS). Plus, I think they will need these games for a successful Wii successor.