burdensome and clunky handheld devices
As opposed to a full-body suit? : 3
The haptic feedback seems interesting, but having a sparse scattering of rumble motors doesn't exactly seem particularly great. How about devices that apply a bit of pressure to the fingertips and palm of the hand? Maybe use a tiny servo motor on the back of each finger to tighten a cord connected to a cushion on the front. Something like that probably wouldn't be very expensive to implement either, and could be combined with per-finger rumble for additional effects. A more advanced implementation could even lock finger movement, perhaps using a cable routed down the back of each finger to the hand, where they could be tightened or loosened by additional motors to limit finger movement and make it feel like a physical object is being held that can't just be easily clipped through.
As far as limb detection goes, something along the lines of Kinect would probably be more practical for widespread adoption, as it would not require a special suit at all. To improve precision, the optical sensor data could be combined with the positioning data from the headset, controllers / gloves, and perhaps foot sensors attached to a pair of shoes. The main benefit of a suit would be haptic feedback of course, but again, I think you would want more detail than just a rumble motor here or there.