While the original Red Steel may have sold gangbusters for a non-Nintendo launch title, it certainly remains one of the most divisive games in the console's short life-span, centering essentially around what many consider to be wonky controls and pre-launch Wiimote promises that didn't really turn out as advertised.
For the sequel, Ubisoft is looking to rectify those control shortcomings by going all-out with Motion+ and allowing gun/sword combos. In what appears to be a leaked trailer (for E3?) of the game (based on an "Internal Use Only" watermark in the bottom corner), the game looks to be taking fine shape. Swords seem to be much more than canned animations, and the player, who apparently lives in a dojo, looks to take great pride in his arm-flailing abilities.
The art style is really fantastic, I think, and I greatly enjoy this trend of stylized looks over trying to look like your bog-standard Unreal Engine title.
You should be able to shoot and slash masked weirdos on Wii by the end of the year.