Whilst it looks cool from a "see what we can do" point of view, I still think it's a terrible way for any arcade game.
For board games, or something turn based, then it's great, buy any game that requires split second timing and a real feel of connection between your hands/fingers and what happens on screen it's a disaster.
Can you imagine trying to drive a real car like that, you would be all over the road, it would be like putting a giant jelly between your steering wheel and your front wheels.
Uncontrollable in and precise way, and for any split second reaction, forget it.