You might have already read my speculations regarding the Wii and TV size. I hoped I could widen my sensor bar, thereby tricking my Wii into thinking I was closer to the TV than actuality, thereby lining up the cursor on the screen with where I physically point the remote. No such luck.
Tonight I put my theory to the test using two votiv candles (candles emit infrared light which the Wii-mote can detect just like the sensor bar). The candles worked great as a sensor bar replacement, but based on the experimental results, the Wii does not compensate for your distance from the TV. I wrongly hypothesized that the Wii measures the distance between the two infrared lights and adjusts accordingly. It does not.
In other words, whether you're 5, 10 or 15 feet away from your TV, if you angle the remote the same way, you'll find the cursor stays at the same position on the screen, regardless of whether or not the remote physically points to that position.
The only solution it seems is to find the ideal distance to stand away from your TV given its size. I'll leave calculating these distances to a follow up experiment (though it should be a simple linear function).
Take the following photographs as an example (and evidence). As you can see, I did my best to keep the Wii-mote steady across each shot (bottom left hand corner). I moved the candles farther and farther apart, but the cursor's position on the screen stayed nearly the same (near the bottom of the third icon in the top row).
You can safely attribute any discrepancies in cursor position to my inability to keep the remote steady while moving candles and taking a picture. I'll be sure to use a tripod the next time. ;)