It seems Sony and Microsoft are both following Nintendo's trend. It won't surprise me if the use of regular controllers is going to be severely reduced. We will be seeing more waggle controle schemes.
Sony's version does look ridicules though, with a glowing orb at the end of the wand. But with the camera it makes for a more solid tracking. The camera is also the biggest limiting factor. The controller has to be in the viewing angle of the camera. The closer you stand to the camera the more space you take in the view. This could be a problem with multiplayer games. I don't know what the viewing angle is, but I hope it is wide.
Nintendo's Wiimotion plus on the other hand is driven by a gyro. This requires constant compensation for drifting. I don't know if this compensation is done on Wii level by Nintendo, or that the developers have to do this. It could make development really difficult and lose any support.
AH well, all in all it seems motion controls are on the way to getting the upperhand over button controls.