I have a work colleage who uses it. She thinks it is fantastic and has lost a lot of weight. She puts it down to the Wii Fit.
Whilst it may not be a substitute for prober fitness training at a Gym, its advantage is its convenience. You can do a few minutes exercise while the dinner is cooking, keep an eye on the family, listen to your choice of music etc.
If this keeps people exercising it must be a good thing. I don't have one but have tried them out a couple of times. Wii Dance looks like another one that could improve fitness. A few of us were quickly worn out on Christmas Day trying this.