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I'm having a hard time believing it's viable for most action games...
Some games have button push that have to be done within a few frames to work and the delay between the video you see on your screen and the input you provide through your controller will at least be 100 ms, probably a lot more...
Now lets say you run at 60fps that's a frame every 16 ms.
That means a 6 frames delay at least between what you see on the screen and what input you provide ( if you have 100 ms delay only).



PS3-Xbox360 gap : 1.5 millions and going up in PS3 favor !

PS3-Wii gap : 20 millions and going down !