Before they announced the name, when the only thing known was that Capcom was making a sci-fi game for the Wii, that was what everyone seemed to think was coming. Then the game's announced, it's not dark and gritty bald space marines, therefore it's an instant failure. It's the Wind Waker effect.
I think people will warm up to Spyborgs as we learn more about it and see it in motion.
I think the point he's making is that people expected a mature, high quality, AAA videogame after RE4 and UC sales and instead we got Neopetz and Spyborgz.