Orogogus: OK, now I think I see what you're saying. The problem is that moving your head is actually a very poor mechanism for controlling anything beyond general point of view. So HMD's are great for being able to "look around" intuitively in a game, but are terrible for actually controlling the game (as in flying a spaceship, or controlling an FPS). People are very used to controlling things with their hands (like a car, bicycle, or even a mouse), and hands are very naturally adept and making finely controlled movements. Your neck muscles aren't nearly as adept, as they're only used to get your head pointed in the right general direction. After that, your eyes do all the work.
Well, yeah. I think that's been hashed over in this thread. FPSes might be okay if the free reticle is reintroduced, but the #1 application should be games where sitting down and looking around is the natural mode of use. I don't want to use it to steer the spaceship, but to look around and have situational awareness come from the environment, instead of from the instruments. Focusing on FPSes as much as this company seems to be doing is a mistake, I think, but probably the selection of sim and simmish type games with POV control built-in is too small to be marketable.
But if you're interested in controlling POV more intuitively, check out TrackIR. I hear it's quite good, and racing and flight sim enthusiasts swear by it. And it's only about $100 IIRC.
I looked at that before, and thought it seemed kind of gimmicky. It might be a superior controller, but it doesn't seem like it would necessarily improve immersion since apparently you have to keep your eyes focused on the monitor while you move your head around.