Not really. I don't see a need to reinvent the wheel here.
Because in this case the wheel is a sluggish, imprecise piece of shit. Name any of the currently available methods of placing a cursor and dual analog is the worst of them- a mouse, IR camera, gyroscope, trackball, track
pad- are all better, faster ways of targeting.
When I play games on PC I use dual analog just because I can't handle the awkwardness of kb+mouse, but for moments where I need precise aim- like headshotting a distant guard in Ground Zeroes- I find myself reaching over and using the mouse just because it's so much easier. Dual analog is fine for general character movement and camera control, but it blows for fine adjustments like that.
No matter how I look at it I can't see this but being a halfway point between keyboard and mouse instead of a replacement for both. It seems to inherit the problems with a trackpad while maintaining the imprecision of a controller.
The point is that it's a compromise. It's not as precise as a kb+mouse, but it's way more comfortable and intuitive than using a fucking keyboard to play video games.
PC gamers may swear by keyboard and mouse, but these things were never designed to play games. Think of all the evolution that console controllers have gone through since the NES, constantly getting more comfortable and fully featured, while PC gamers are still using shit that was designed for office work and largely unchanged since the 80's.
On the other side, the Steam controller isn't as simple or comfortable as dual analog, but it offers far more precision and depth. It enables games to be played with the comfort of a controller that never would have worked with dual analog before, and for the games that
did work OK with dual analog, it just offers that much more precision.
There definitely is a market for something like this. Not everyone is still happy with dual analog. I think the Wii remote and nunchuk was a great precursor to this- an fair middle ground between dual analog and kb+mouse- and it's nice to see that evolution continue.