Christ, you people make my brain hurt.
No, the Revolution controller is not
actually shining a laser beam at the screen. I pointed that out so you can understand that it's not the position of your hand in 3D space that matters, it's the imaginary line between the end of the controller and the screen. If you hold the controller flat near the bottom of the screen, then just tilt the front end of it up, the cursor will move up the screen.
In the plane demo, you made the plane loop-the-loop by pretending the controller is a toy plane and flipping it over in your hands.