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I thought they've done something like that for the DSi.

http://www.youtube.com/watch?v=pWYgM1RGixM

It's the same tech you descirbed, if i got it right. For this DSi game, the camera was used like you described to do this 3D effect. I wouldn't be surprised if this tech would be used on a controler like the rumored one.

But there are some problems. Price of this controler? touchscreen, camera, HD, sticks etc, battery, processor for streaming...

I think it could be the revolution of gaming. multiplayer in one room with several (min 4player i hope) displays and an overview on the TV. AMAZING!!!

MArio KArt 3D.....ONLY for Wiitab