I don't think this would really work. The western Nintendo audience hasn't been relevant to Tales success since Symphonia, and a major part of the GameCube audience has moved away from Nintendo hardware.I think it's the most logical direction. The Sony versions target Japan, the Nintendo ones target the west. The series can exist on both worldwide no problem.
Baba just has trouble seeing that I guess. He seems to not care about Symphonia's huge and still untouched success in the west on GC. I don't know why.
Graces I think could've decided it once and for all if they localized both, including the vanilla Wii version. As long as it was cheaper ($10 or more cheaper than the PS3 version) and was 100% polished (without any of the problems that affected the JP release), I think it would've been a fair competition.
Actually DOTNW was $39.99 IIRC when it came out. That would've been perfect for Graces Wii. It was $59.99 on PS3 right?
Symphonia did well because the GameCube was utterly barren of JRPGs, and it just came at the right time. It then became a Player's Choice title and sold even more. Similar case with Abyss 3DS, it was the only real full JRPG at 3DS launch, so it sold fairly decently.
Nobody would've wanted the Wii Graces. Besides the lack of consumer confidence after news of how the Japanese version turned out, it was extremely short without the additional R content. To simultaneously release a version of the game (requiring its own separate programming and testing) would've been *extremely* illogical, and absolutely would've lost them money. Even at a lower price, nobody would want to buy a content-light release of an RPG. Between that and the JRPG audience having long since moved to PS3, it'd hit the bargain bin at lightspeed. I know you like your Nintendo consoles, but this was never going to happen.