Pretty cool stuff. It reminds me of the movies a bit.
However, although I cen see many commercial applications for it I can't see it catching up in homes.
All this frantic arm and finger movement would get a bit too much after a few minutes.
I compared how fewer movements of the hands/arms you need to do the same with a mouse and it really makes a difference. Plus the fact that fingertips don't enjoy friction for prolonged periods even if it's on glass.
Nice gizmo though. One more way for M$ to make some pennies.