That's a good summary.
Thinking about the Wii rip-offs, maybe that's an area that PSN/XBLA could be exploited?
Low budget, low cost, adequate graphics, great gameplay - isn't that a summary of what those markets try to achieve?
Absolutely, although it shouldn't be limited to it - in fact I predict the renewed focus on also more 'casual' audiences will cause more PSN and probably also XBLA games to be released on disc as well.
But definitely, there are a bunch of existing PSN games that are being patched with Move support that fit the category 'Wii rip-off', even if that's sometimes a bit unfair to the title's quality. I own Hustle Kings and Velocity Bowling for instance, and both of these are getting a Move patch. And both of these titles would definitely have existed without the Move.
Anyway, the Move controller isn't so much traditional as that it suits the way we interface with a lot of things in our world - we grab something with our hands and move it, we pick up tools with our hands and use them, etc. The Move allows these things to be replicated in 3D space very exactly (both moving and rotating objects with high precision). Add to that a price pointer feature that matches the very often used Mouse and the augmented reality ('Magic Mirror') features make it a very powerful tool. Yes, it is in many ways 'just' an evolution of what Nintendo did with the Wii, but so was the dualshock controller that so many now swear by. People once thought of the d-pad very highly too, and certainly today it still has its uses for some games, but that's partly because those games were designed to work with the d-pad . Think about a game like pac-man, where your only control options are going up-down-left-right.
Anyway, Sony seems to have designed the Move controller to be capable of replacing existing controllers, and from the looks of it it can probably manage to do so for at least a large number of games. Certainly it opens up the platform for receiving Wii style games as well as mouse controlled games and applications on PC.
I'm going to make a wild prediction here: Kinect will eventually be paired with some kind of peripheral to work with a wider range of games (may be the traditional controller initially, but will move something more suited to individual hands very soon), and Move will evolve its camera tech to allow even more Kinect like features than it already does. Nintendo will come with its own version of full-body sensing (camera based remains likely) and all three will evolve precision hand-interfacing one way or the other.