They didn't use arc for this, just the eyetoy.
"Analogues for those figures can be found by measuring actual gameplay and we go to GDC expectant that Arc will work well as a direct joypad replacement. There's zero reason whatsoever to expect that button presses will be any less responsive than the trusty Dual Shock 3, and while movement might feel a touch less responsive, wand motion should carry far more information in terms of movement/trajectory. To put it basically, pointing is more accurate, precise and natural. As a parallel, the Wiimote has more lag than the PS3 pad, but there's no doubt that you can point and shoot at opponents far more quickly in the Wii rendition of Call of Duty 4, for example."
That last part is comparing the dualshock to the wiimote by the way, not wiimote to arc
Time for hype
