First details on Xbox 360's Wiimote-ish motion sensing controller

Motion sensing controllers: Nintendo did it up right, Sony tried to do something like it, and now Microsoft is busy working on their version. 

MTV News gives us the first details on Microsoft's answer to the Wii Remote. According to their anonymous source, this Wiimote-looking device is scheduled to appear before the end of the year. This source says also that this controller has been in the works since last summer, and it seems that the Microsoft-owned studio Rare has been tasked with creating the interface and look for the controller. The source says that Rare has had trouble meeting deadlines, though.

A sketch of a concept from this source (shown above) reveals that there are four face buttons, an analog stick, and a microphone. There are also plans for the controller to interact with the Xbox 360 camera.

This source doesn't seem to like the idea of this project: 

"They want the usual assortment of 'Halo'/ 'Gears'/ 'Forza'/ whatever, just in waggle form," our source told us. Such idea-generation has not gone smoothly. "The whole thing is a colossal clusterf---," the source said. "[Microsoft] marketing just want it so they can match the Wii point for point. The biggest parts of their marketing materials outline how easy it would be for third parties to port their Wii games to the 360."

The source goes on to say that even the Mii concept has been adapted for their use.

What do you think about Microsoft's attempt at the Wii market? How will this be received?
Do you think this will even see the light of day?