Shattered Memories is quite possibly one of the best games in the Silent Hill series.
I'd go so far as to say that it's one of the best narrative games I've ever played - especially the Wii version. The fact that it gets ignored or derided because you can't a) shoot things or b) kill enemies annoys me. Granted it has it's faults..the escape sequences are dicey but it's pure psychological horror.
I thought the Wii controls actually helped it. There were some interesting ways they used the motion stuff to immerse the player. And yes, that story was a total mindscrew, really enjoyed it.