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?
