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You can play a lot of ps2 games with a DDR dance mat plugged in as well... Fun for the novelty of it, useful no.
This looks fun for 5 minutes for farming, when you're overpowered for the zone and can pretty much kill anything without much effort. But as said earlier, (circle) strafing, precise selection of multiple targets in the heat of battle, carefully sneaking around targets, quickly grabbing something from a 20 slot bag, not gonna happen.
And I'm not sure about gesture based spell casting. Black & white did it before by drawing a figure with the mouse. It was aggravating if you quickly needed a spell and it would not recognize correctly. If you have a keyboard available, why use a method that works 9 out of 10 times and takes longer, when you can just push a button that works 1000 out of 1000 times without any input lag.
Okami used it too and it makes a bit more sense for a controller with limited buttons. But still it only worked 9 out of 10 times at best and ironically reviews stated that it actually worked better on a dual shock controller then with the wii remote. Anyway the solution has already been found, either map quick spell buttons or use a radial menu that can pause the action for very fast paced games.
I guess sorcery will tell if gesture based spell casting has a future. If it's still not fun and 99% reliable with the precision of the move then I guess it's better to just put it to rest.
There are plenty of applications for adventure games though. Think Zack & Wiki, Heavy rain. (And it was still fun in Okami when timing was not a big deal) Mimicking actions and gestures is far easier to do right (with less lag), then making a system that has to select the right action from a list of possible gestures.
It's funny the games best suited to each control system are on the wrong console. Alan Wake with the move for the flashlight would be awesome while Heavy rain is perfect for Kinect.
