I'm trying to be less of an apologist (or "press release" as gadzooks would SAY), but I'll try to answer your questions -
The difference between the Wii and the Power Glove is that the Wii works, it's the developers that are the bottleneck between the remote and what happens. Most developers didn't actually get their hands on the Wii hardware until juuust before their games were supposed to launch, ergo, the control for many games was a real crap shoot and either passable or terrible. In contrast, Nintendo's controls are generally way better, since they're been working with the hardware the longest.
Wii Sports controls well in 3 of its 5 games. Zelda controls just fine, as it should, because most of the controls revolve around buttons and joysticks. Warioware actually works surprisingly well. For 3rd parties, Tony Hawk's Downhill Jam, Elebits, and Trauma Center: Second Opinion all control very well. All of the Wii's menus and channels control excellently, to the point of perfection.
Virtual Console games are generally just roms, although the N64 titles have been getting 'updated', mostly to reduce the filesize and optimize textures. They took out a ghost racing option in Mario Kart 64, I understand, but then again I hate that game anyway.
it kind of scares me that, at this point, the only good games are launch titles.
Of course the only good games are launch titles YOU FUCKING IDIOT THE SYSTEM JUST CAME OUT THREE MONTHS AGO
Anyway, the Wii will start getting some fantastic games as soon as the games arrive that began their development cycle AFTER the system was released to the public. That means you'll start having some good shit around holiday season '07 and hopefully from then on.
Again, not to sound like an apologist, but this is the story of EVERY VIDEO GAME CONSOLE IN THE HISTORY OF FUCK. Actually, the Wii can more or less be compared to the 360 in terms of quality games being released - 360's release came with people pissing and moaning about the 'xbox 1.1' graphics and a lack of good games - the difference here is that not only are there actually a handful of good, functional games for the Wii right now, but the Virtual Console is a hell of a lot of fun too, and the internet and news channels add something unique to the console that actually are pretty useful.
So the bottom line is this - You were either playing at a shitty kiosk or you are mentally retarded. There ARE games with shitty controls on Wii - lots of them, actually, but they're all from THQ and other large companies that just released some ports without a hardware reference.