my two cents -
i have no idea what is meant by 6 degrees of freedom/axis whatever. what I saw in the demo was only xyz axis movement (actually, the flying seemed to me more focused to two planes). anyway, this didn't seem to do much more than a analogue stick already does.
most important was the LAG. from what I could gather in the video, the controller acted basically like an anologue stick in the sense that it only sends directional movement, ie lean this much, etc.
the wii controller, in contrast seems to be more like a mouse, in that it is sending location. a big difference, for anyone who likes first person shooters on the pc can attest. by sending location, the response is instant, you move (mouse/wiimote) accross space x units, and the character/gun/sword moves immediately. by contrast a joystick take s time, because it is not sending location, it is sending, "push the gun/sword/etc. x amount" and the result is you are accelerating more than you are directly moving. in the end the imersion is lost, and of course, tennis, cooking, fishing, drums, swords are impossible.
to me it looks like a cheap rip off as well, and I don't see too many games using it.
one last point. this looks to be worse than having done nothing in one sense. reviewers now have something to compare the two systems on where the wii will have a clear advantage. before today, sony and microsoft had a clear out in saying, 'power is more important, the wiimote is too radical for gamers'. now however, sony has validated nintendo, and every review will have mention of the fact that wii executes the control flawlessly while the new dual shock does not. it is a reverse of the previous situation, where every review of the wii would mention that cpu/gpu wise it was less powerful than the 360/ps3.
I predict nintendo pulling out a ds style win here. close match up in the us, with advantages world wide, and run away success building in japan.