Given that Nintendo are trying to establish that the WiiU is a new console and the draw is a new controller to the general public, that advert isn't all that bad. It's not directed at us that know gaming inside-out. Also, Rufus Hound is a likeable guy (more so when he had his awesome moustache), the general public will know him from TV and wonder what he's endorsing so they'd pay attention.
Also, as @Rowan pointed out, it's the first of a series of adds. It's not as bad as you guys make out and it's a marked improvement on their prior adverts!
Sure the Wii had more of a draw in its controller but that too missed out on tonnes of games, that never stopped it selling like hotcakes!