I think it's an innovative idea
...if a little dodged-up in the execution.
I'll sate that it's a given: That the overall approach to driving, such that the auto manufacturers have consistently presented the driver with, throughout the history of the car, that it is a continuing paradigm, because it works, and works fairly well.
Even so, I don't believe it must necessarily represent the only viable paradigm, for driving, from the driver's perspective.
Granted, I sure as heck wouldn't want to drive a car with any kind game controller instead of a steering wheel. The novelty factor of such an approach would certainly disappear quickly, with the first run of accidents that would certainly occasioned with such an inadequately responsive device for controlling the direction of the car with.
However, if they can present, to the smartypants of the industrialised world, a viable means to so "refactor" the driver's experience, without impinging on the safety of the driver, the passengers, or any other motorists, then I say, *that* would sound like a "go", to me.
I don't know if Audi has really hit that mark, with their current system, as such, but it sounds to me like they may be, at least, opening the door to it. So, I say it sounds like a "go", to me, even for all the (ideally, non-life-threatening) troubles and travails that the next guy will hopefully be able to work out of the approach, to make it actually work, firstly for the consumer/driver and secondly for the manufacturer, without it impinging on the "experience" of either, inasmuch.