I don't doubt that this controller design likely won't cut it for precision FPS play. On the flipside, however, having a giant keyboard, plus a mousemat taking up space (and to work well, a mouse needs a significant amount of space) and flopping around when people sit up and down on the couch may work for hardcore gamers, but it's likely a non-starter for anyone else. Even if you integrated the mouse so it could be on your lap, it would still be a large ugly thing that's likely to fall down and is hard to use in many of the relaxed positions people are used to gaming in.
I suppose my "complaint" is that they could do a better job of bridging the gap, but perhaps I am wrong. You do make a good point that the mouse+kb may be too cumbersome for some (most?) consoler switchers.
I do wish that I could see what sort of solution Valve could come up with if forced to keep the primary mouse+kb, though. Some sort of streamlined solution which you partly imagine in your post.
A few friends and I once had imagined a keyboard with an attached mousepad and a mouse that was magnetically (or otherwise) attached to the pad, that prevented from falling off, so that you could rest it on your lap while sitting on the couch.
I always wondered if something like that would be possible.. So you'd have all your precision mouse movement without the akward balancing of loose things while sitting on the couch, or getting up and sitting down.
