Soul calibur and Street Fighter (4 and onwards) has jiggle physics too. The (arguably) second best fighter in the world for SC5 is a french girl (she's a DoA player too btw!), and i'm pretty sure she knew the latest installment in the series would have jiggle physics, considering the series have had them since SC2.
I'm not sure if Tekken 6 have them, I would have to check.
Personally, I do not buy games based on them having jiggle physics or not, but I do think that the more realistic graphics get, the more obvious does it get that certain body parts/features move in certain ways during movement. This includes, but is not limited to breast physics. I don't even think much about their inclusion when they are in my games, but whenever a game with a lot of character movement comes around and doesn't have such physics, I notice it as being kind of strange.
Other examples are for example hair flowing naturally over someone's shoulders. It doesn't matter how awesomely good looking someone's hair texture is if it moves as if it was made out of metal strings. Likewise, if you are designing a good looking woman in a game and her character model has a high degree of realism, it would look odd if everything but her breasts moved in a realistic manner. At the same time, I don't think the clothes given to the women of many such games are very nice. It would be cool if someone made a game with such physics that didn't do their best to show off as much skin as they possibly could get away with.
As I said, ideally, every body part for both males and females should have realistic physics applied to them, but while we're limited in resources, the most obvious parts naturally come first.
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