According the Nintendo of France....
So yeah. Nintendo of America didn't want to localize Xenoblade Chronicles given
a) They showcased Xenoblade (aka Monado) at E3 2009 but not for following years at E3 2010 and 2011
b) NoE was handling the translation first, not NoA
c) NoA themselves saying they didn't think it was going to "sell".
Thus, if Nintendo of America weren't officially releasing Xenoblade, no way in hell we were getting Last Story or Pandora Tower. Hence, thanks to Operation Rainfall's efforts, not solely Nintendo's, in approx. one week, North American gamers will have their hands on a copy of Xenoblade Chronicles, a game one year ago Nintendo didn't believe was worth it. With the Last Story coming in June and Pandora' Tower now a possibility.
So, your assumption Operation Rainfall didn't do anything was a big, fat false. Second, your logic that Nintendo wanted Xenoblade and Last Story cause they were "great games" was proven wrong. Third, it shows one example why the modern video game industry is so messed up that a whole market is ignored thanks to some bean-counter in a corporate suit in his high office in his ivory tower somewhere is so tone-deaf and ignorant of gamer culture that they thought Fortune Street was a viable venture than Xenoblade. (For the record, Fortune Street sales = 120k, Xenoblade pre-orders = 170K. Suck it, corporate idiot.)
Then why didn't Namco outbid Atlus for Demon's Souls too? Cause Namco never thought it was a good venture until after it sold over a million overseas and now look like the dam bloodsucking parasites that they are for snatching Dark Souls from Atlus' rightful hands, after the fact. Once again, you're dam wrong. It ain't about the games....."it's the money, Lebowski."