But don't these cameras require higher-definition than cameras currently out in the market?
Yes and no. The video part is independent from the photo resolution. While PS Eye is SD, it can capture video at 640x480 @ 60fps or 320 x 240 @ 120fps. The high framerate is required for tracking fast movement.
On top of that, add the 4 mic array.
That's < $10 using Eye of Judgment as a reference (Not very accurate but we have very few data points).
And Sony's scheme requires a new controller to replace or complement the DS3?
Both, depending on the game. Presumably, you can grow your controller collection via your game library. e.g., They can bundle the camera and let you buy the new controllers separately. I have a feeling eventually, the new controller may come in different shape and form depending on the game (e.g., Embed in Guitar Hero, that skateboard game, etc.).
Even if Sony chooses to bundle both PS Eye and the new controller into PS3, they won't affect the PS3 specs since it is already cast in stone. For PS4, it may be a matter of expectation if the 3 vendors manage to rope in more casual gamers.
I wouldn't mind using motion controls once in awhile. But most of the time, I'm going to be seated after a long day of work instead of flailing my limbs like a madman.
It depends on what kind of overall user experience they are after. At its current form, I'm inclined to agree since it's tiring to flail.
EDIT: I believe people will discover new/better ways to use the controller once it's out on the market. I wouldn't be surprised if we see totally new applications and business models around them. Some may even be industry specific (e.g., fashion). From this perspective, flailing may be a positive trait. It's called "exercise" or "workout"