I dont see it taking off. Sorry to say even though it is the first non optical way of tracking, it is also a controller that relies purely on motion.
You loose the conveniance of the tactile controller while gaining the headaich of having somethings to loose. You also loose the conveniance of just turning the device on and going nuts, which is what microsoft was trying to do with there product.
I dont see this working for casual consumers. so much crap you can loose, motion capture might be really cool with it, but I dont see something like this doing the trick unless its a single divice that the user can put on that would be able to track the entire body.