I like it! It may look downright ridiculous, but think about it folks! Innovation is not about the pixels you pump, its about the pixels you hump! I can see a Virtual Sex game made from this!
On a serious note, simulation games could get a huge boost. We could see a Polo game, horse racing, knight in shining armor...Hmm...may be we can combine the Knight in shining armour and Virtual hump. Good times people! (If Nintendo goes ahead with this!)