Maybe the accuracy is its big benefit, but in the video, it looked like the lag would make it useless to actually play a game. And the demonstrator looked like he was moving gently and predictably in order to mitigate that issue.
I think it would enhance immersion, much more than the wii controller (which it turned out people wanted). But I agree the lag spoils it (esp visible with the baseball bat). Version 2.0?
I work for a well known video game company and spent some time evaluating this controller as well as the wii motion plus. Without violating non-disclosure there's not much to say except the new controllers are fun, will enhance game play, and still have some issues.
Of course, it will have to come down farther if video game manufacturers are going to consider spending $ developing features for people using these. Right now, spending time designing a game for this kind of interaction means you'll be able to sell it on the Wii.
When the PC, PS3, and XBox start having these kinds of input devices, game (and software) manufacturers will take much more notice.
Ah, I'm blind. For $100 it's well worth it. It's completely different type of interaction, true 3D (actually 6D as you get also orientation). I would get it even without games, just for hacking.
While the possibilities are definitely interesting, ultimately I think this will be not much more than a gimmicky toy - kind of like VR Helmets for PC's.
This control probably won't be any more. I think, however, that motion controls are here to stay and improve.
Why? Simple: it removes complexity. You can do things more intuitively and more subtly (think d-stick versus d-pad), and you can suddenly do more with fewer buttons. You need one less stick for aiming at the screen. It makes games better - more involved - while at the same time allowing more people to play it.
I don't doubt that whatsoever, I originally was going to expand on what I meant but it didn't come out right, so I removed a large part of my response.
I think the problem extends mostly from the poor choice of platform - the PC
In the greater consumer market (think non geeks), the PC is generally tethered to places that don't have much open space associated with them, eg on desks either in bedrooms, home offices or out of the way places.
I think this is the greatest restriction placed on them, especially for a control device that gets you ducking and diving through a magnetic field.
This is why I don't think the Wii has anything to worry about, it's a dedicated gaming device thats nearly always permanently connected to the main TV in any household and that particular TV has plenty of open space in front of it for swinging your arms around.
Now if they were bringing this out for one of the other consoles with dedicated developer support, that's a whole different story, but right now as an additional controler for a PC I don't think it will do too well.