Very cool tech but I don't think GT5 is going to be the best use of it, as said above you cannot turn your head far before you cannot see the screen. But the general emersiveness may be improved greatly if the view just tracks with your head a little bit, even if it is not at real functional difference.
The potential of this in general is huge, think about being behind cover in a shooter and actually leaning your head to look around the corner, that sounds cool. I hope with the wand and Natal developers really start using creative ideas like this more.







