I hope that's not an argument in favor of the Wii, the Move and the... I forget what Microsoft's EyeToy clone is called. I certainly wouldn't say any of them have "advanced gaming beyond it's current state", more like sidetracked it into a dead end.
I'm not a big fan of the motion control technology because that's not the kind of "wider range of interaction" that I'm looking for personally. But I don't begrudge the technology. I don't think they're dead ends and they certainly have the potential to make sports games and shooters more interesting.
As for whether it's sidetracking the industry? Well I would blame the marketers who decided that motion control is for kids rather than the technology itself. Take a look at this video of Wii head-tracking to see what the technology can be capable of, but that developers have yet to use. http://www.youtube.com/watch?v=Jd3-eiid-Uw