You can say this about pretty much any subject matter. i.e. Mario would make a terrible video game, because of the huge variety of things you could do if it were a tabletop RPG instead. I mean, you can't even ask Luigi what his favorite bagel type is, but you could in a Mario RPG. You can't fashion a crude knife from the bones of slain Koopa and ritually mutilate yourself, but you could in a Mario RPG. You can't choose to light the Princess on fire with your fire-flower and sacrifice her to your dark botanical gods, but you could in a Mario RPG.
Exalted could make a fine video game. For example, who here would not play the Deathlord Dating Sim?