Well, it's not exactly a bug....
The purpose was to allow people to transfer their pictures, audio files and some video files to the television via USB thumbdrives.
The term "bug" suggests that there is an incompatibility within the boundaries of the limitations; in this case, a MSC device. It's not a bug or a mistake, since WiseLink does do what it was intended to do.
If the iPod Nano wasn't a Fat16/32 formatted MSC-type drive, even that wouldn't work. Luckily, it is and ended up being compatible.
There should be other solutions to playing your music through your television from your iTouch if that's really what you're aiming to do. If it is, let me know, and maybe we can come up with a solution together.