The fact that the Wii can be used outside of therapy seems to be the main arguing point, but does it matter?
Even if there was a land rush for "free" Wiis, $300 game consoles are going to cost tax payers and insurance companies less than most treatments, the cost of related fraud may even be decreased.
Fraud aside, whats the big deal about Wii also being a video game console? So in spending $300 dollars for rehab equipment (that works remarkably well given its price) the insurance company/gov improves the receiver's quality of life (ostensibly) - thats a happy coincidence.
Fraud not aside, again, with conviction, its $300! Thats small potatoes, a drop in the bucket of prescription drug abuse and wrongful welfare.
IF the guy pays insurance, or the gov is OK with spending the money on some form or rehab, and Wii Fit can be shown to fill that need - then go for it.
And as far as reselling it to recoup the costs, I think thats a bad idea - the cost of employing people to do that, and the system to track it, and triplicate storage of that data, probably outweighs the money that would be made back.