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It isn't the difference in perspective that I think would be a problem but rather than constant twitching. Like watching someone's home movies where the camera is constanting twitching around and shaking and such.
He demonstrated pretty smooth motion, but I think in a real gaming situation it is much more likely to be jerky and constant.
As for looking around, I do it all the time. It certainly depends on the nature of the game, though. But that's why I mentioned it being particularly an issue for the Wii where 80% of the time I've played it has been in a party situation.
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