I so totally want a high-res version of that image!
Don't see why there would be any problems with The Sims in this format, things/people are just SD (and you'd have to cut some of the more explicit stuff, not that there was much to begin with...)
Nunchuck scrolling & Wiimote pointing will be a good interface for the game as well.
I hope it will have multiplayer like the other console versions - would be nice to let 2 or 4 people play this at the same time.
- Chad