EvilHomer
Pretty much, yeah. The title itself translates to "Cripple Girls".

The best part? It's not even Japanese. Apparently, the game was made by a group of weebs from 4chan. Back in '07, someone posted a filler page from a hentai doujinshi that described a dating sim based around disabled girls. A small band of slightly-more-talented-than-average chantards loved the idea so much that they started their own game development company, Four Leaf Studios, with the express purpose of turning the sketches into an actual game. After a few years of work, this was the result.

You can read the touching origin story here:
http://katawa-shoujo.com/staff.php

Vaidency
So it's basically the anime equivalent of Wolf: the Animated Feature, except it's actually a finished, working product chock-full of unnerving fandom ideals?

Fantastic.

Jet Bin Fever
Sadly? I don't think the funny parts would be worth sitting through all the bad writing and inane conversations. Unless you're of the type that can emotionally bond easily with fictional characters, which is somehow extremely common on the internet.

Cyberblah
There's no rape or horrifying sex scenes, if that's what you're afraid of or looking for.

RocketBlender
@Jet Bin; That's where I am on this. I can always get behind a bad, corny movie, but bad, corny games are a million times harder to enjoy and usually have very little payoff for the time you have to invest.

@cyber; Kind of both, looking for a dreading. Ultimately though, I just don't want to risk my wife seeing a game called "cripple girls" installed on my desktop.

Caminante Nocturno
Unless your wife is fluent enough in Japanese to know what "Katawa Shoujo" means, then it shouldn't be a problem.

If she is fluent in Japanese, then that's good, because being a polyglot enriches the soul.