Can you imagine looking around with one analog stick, moving and strafing with another, and at the same time using the Wiimote for swordfighting? I think that would be too complicated.
I think the best way is a version of the lock on system that Red Steel had. Preferably one where yuo control the locking on with a button. Or the ability to press a button to disable looking around, and enable swordfighting with the Wiimote.