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Grey Acumen said:
POV = Point of View

Hence, for the "3d head tracking effect" to work, it requires no more processing power than it takes to move the camera in a game already.

Bingo. It's no different than moving the "character's view" in the game. Which is why in most cases it will be a lot faster and easier to move your character's view than your head. In this cases it would be about as useful as using head tracking for a game like Stardust HD.

The reason why it' works so great for flight sims is you can't turn a plane around in a split second like you would in a FPS.

The best idea I can think of for console games is a Mech game ( it moves slow) thus you can view your surrounding. Xbox did have a $150 Mech game with a huge controller so my bet would be Microsoft.