I wonder how widely used head tracking systems are for gaming? I saw one at my friends, who plays a lot of flight simulators on his PC, and I guess basically the technology was quite similar to the Wii remote - IR-leds and a camera.
The same, minus control over your view. It's a very important difference. That's why you can get dizzy in a car when others drive, but not when you drive yourself.
Some people report motion sickness when using VR glasses; I think sharing the view would only make it worse for all but the guy in control.
The "magic" is in the man, but not in the software. I guess it only takes a knowledge of the low level Wii remote protocols and a good grasp of linear algebra to execute this. Most people that have that knowledge still don't come up with this coolest stuff.
The implementation for this is pretty simple. What this guy did is coming with a very original and interesting idea no other came before, and that was brilliant. I'm very, very impressed.