Interesting. Capcom cites high costs as the reason, so this is what I want to know; how much of a budget were they planning to have? I see the chief advantage of the Wii being they could feasibly reuse pre-existing assets from the PS2 game, prettying them up a bit, whereas a PS3 version would involve remaking everything.
How popular is this series? Is it the development costs alone? Or is it a relatively niche title who's sales projections on the PS3 make it look like too much of a risk? Why not make it cross-platform with the 360 and PS3? Or did they consider that too? Is it just the raw numbers of Wii's in the US, Japan and Europe were too hard to resist? Maybe in a few years we'll see Monster Hunter 4 on the heavyweight systems, but for the time being...