Could be that Sony was working on this before Nintendo, and filed before Nintendo, and Sony gave Nintendo the heads up after they talked about at E3, causing them to shut the project down until they found a way to work around the patents. The patent application Sony put in is the way Nintendo should have went in the beginning as well, as the finger clip got way too much attention.
I personally think this tech can improve gameplay in a number of genres and hope to see it on all consoles in the future.