This would still be crap for VR. I know they are expensive and not readily available but if you get the chance try out the Occulus Touch controllers (if in the UK certain John Lewis stores have demo units) to see where Sony need to be going with VR controllers. It isn't just about tracking movement but also simulating a wide range of hand movements as well as providing methods of locomotion.
Grip is one of the most important factors that isn't at play with the move, if you look on the Vive controller and the touch controller they both have buttons around the grip area. At the moment to pick something up with the move you often press a button with either your thumb or index finger and is essentially an on off action with your digits in an unnatural position. With the competitors you squeeze your hand like griping something and feels intuitive that you quickly forget there are buttons you just do the action.
After playing with the move and vive you don't normally care about digit positioning but with touch you realise how important this can be, especially for new users who don't know the controller layout.
The touch uses sensors in the buttons to see where you fingers are like so:
Which can be used simply to show the position of the finger on the controller:
But then can also be used for a myriad of gameplay elements:
The Vive controller is a great motion controller but an ok VR controller. The Move is a decent motion controller but a poor VR controller.
Valve are developing a proper VR controller that takes into account hand positioning which appears it could be better than the touch as you don't have to grip the controller at all times and can simulate full digit release. This is where Sony need to be going if they are developing another controller it needs to be a purpose built VR controller rather than a move with an analogue stick as the upgrade would almost be pointless. When I first saw the price of the Touch I was like no way would I pay that but after using it I think it is worth it.