In a nutshell Dyack mentions that they were approached by Nintendo to make a mature launch title for the GCN. Himself and a few memebers of his team flew back and forth between Nintendo Japan and Ontario where he kept presenting, failing to impress, reiterating and representing to Nintendo.
He mentioned in one of his interviews that they played the current demo of Eternal Darkenss before Miyamoto and he sucked his teeth when he saw it (He CHUPS!). He told them two very simple words "Think fun!"
Something else to read. It was actually worse than this. Just choose wisely who you wish to fund for kickstarters guys.
http://kotaku.com/5955223/what-went-wrong-with-silicon-knights-x+men-destiny