It uses gyration technology, from the rumor mill. So, some games will appparently be manipulated by actually moving the controller. I can see force feedback being used in conjunction with it, so that moving the controller under certain circumstances would cause the controller to resist.

One of the coolest fan mock-ups I've seen had the controller actually separated into two handheld pieces, with buttons and joysticks of course. Imagine if you took the standard GCN controller and removed the chunk that connects the two handles, and you've got the basic idea. Completely wireless. Imagine playing a boxing game, or something to that effect, and every time you swung your fists you could feel the controller vibrate against your fist, as though actually striking your opponent.

That's the coolest theory I've heard as of right now. However, Nintendo has said it won't be as outlandish as most fan mock-ups have theorized.

Sure, but that doesn't change the fact that it looks like a clumsy hunk of crap. It's just a small, clumsy hunk of crap.