Have you tried it?
It works well. The implementation requires a lot of tweaking, but the core idea which is running in place, on the spot, etc & some method of activating it (as opposed to always on) is solid and couples well with room scale.
This (or something similar to it) is basically as good as it's going to get for immersive general consumer traversal in VR (ludonarrative teleportation not withstanding).
The specific demo, the walking speed is too slow, and there's no speed gradient in movement - it just goes from slow to fast. Fast matches well with running on the spot, but not jogging on the spot (feels like you're moving much faster than you should be... i.e. running speed).
Also, the best method is to not put it in your pocket, but to use the wand as a pointer for your intended direction of movement - pointing the trigger (i.e. the controller face towards you) in the direction you want to move.