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Great news - Okami DOES feature true widescreen!
A blog excerpt from Matt Casamassina’s blog. This is directly from Capcom PR…
“I know you guys are lovin’ the Okami Wii goodness right now. It’s about to get even better because we’ve got a fresh build coming your way next week. You might have noticed the aspect ratio was a little off. We did too, and the build you’re receiving will display in full 16:9 (no black bars on the sides). Now you’ll get to experience the game the way it was intended to be seen. Your screenshots should look better too.”
Ah…I can finally let out a sigh of relief. Glad to see that Capcom jumped on the issue. Thanks to everyone that sent this in!