This is the iMotion, a controller concept by Intellect Motion. It's a mouse, that you hold in the air, which doubles as a motion-sensor, and triples as a means of getting haptic feedback.
When it comes to sim gamers, nothing is too expensive or too out of the ordinary. They will pay any price to have an experience that is as close to the real thing as possible. Meet the VRX iMotion. Nvidia was showing this bad boy off at their booth at CES this year, so I just had to give it a whirl.