Honestly... It doesn't look as terrible as I expected? ¯\_(ツ)_/¯
The ad is very cringe worthy, of course, and the main hook it's impractical outside of very specific venues like convention centers. But the game itself looks like an inoffensive mini-game collection, and at least some of those mini-game look like they could be fun with friends.
I'm not particularly interested in getting it, but I honestly expected something far worse given the reports that surfaced about it.
Also, I don't think they showing this video outside of the Direct is a "vote of no-confidence" (so to speak) on Nintendo's part. After all, their most experimental games and products during the Switch era (like Labo and Ring Fit Adventure) weren't initially showcased in Directs but rather in their own dedicated videos like this one. Their marketing teams must have concluded that most of the audience that tunes in for a Direct tend to not be interested in this kind of experimental games.
That being said, I definitely think Nintendo has little confidence on this game, but that's mostly reflected on its price point and that they didn't show this video when they initially announced the game.