ferooxidan :
Really all of the comments above. Get real people. Comparing to mouse and keyboard setup? Really? It feels like u compare a lambo and a vw beetle in a drag race. There are tons of people playing CoD on Xbox 360 using gamepad. With ur comments above, why should they bother using gamepad then? Play it on a PC.
But that is not the case, this demo is to show you that the gamepad is accurate enough to be a replacement for a mouse and a keyboard setup. Also in my opinion it is even better than playing a fps game with gamepad. Those are 2 things u should compare, apple to apple, a gamepad with a gamepad. And they did mention that the Steam Machine will be compatible with keyboard and mouse, still want to make kids comment like "way to get killed early on fps"?
Why should we compare the accuracy of this to a gamepad? a steam box is a PC, and as such if you play it using the gamepad that comes with it, you'll be facing people who use a mouse and keyboard in multiplayer games. If everyone were to use a gamepad on PC, then sure, I wouldn't mind. But when you'll be decimated in CS:GO or BO2 because you failed to react fast enough just because of your steambox gamepad compared to the trusty mouse and keyboard that your opponents use, then you'll realize that there is truly a problem.
It's a very nice try to make PC gaming more accessible, to be used in a living room environment. And while I was suprised with how accurate and natural it seemed to feel for the person in the video, I remain skeptical about how this can be used in competitive multiplayer gaming (And I really don't even mean pro level)