I think that you're missing the point if you think people are supposed to (or will) buy an Android phone for the sole purpose of using it as a controller...
No, I fully understand the use of an Android phone as a controller. I consider it an option that 10% of the user base will use.
I'll rephrase the question: what input device am I supposed to hand to my mother-in-law? A wireless mouse? A gyro-pointer? A mega-keyboard with a teensy little trackpad on it? And she's supposed to focus this little 32x32 cursor on the correct place on the screen?
Right now, I don't know. But it's entirely possible that in the future, your Google TV set-top or Google enabled TV comes with voice recognition and your mother in law just tells it what she wants.
Seriously, this is a clear example where Apple thinks things out a little better. We're now heading into an indefinite period of "OMG GOOGLE TV PWNS APPLE TV"...but Apple at least took the time to think out their answer before presenting it.
I'll rephrase the question: what input device am I supposed to hand to my mother-in-law? A wireless mouse? A gyro-pointer? A mega-keyboard with a teensy little trackpad on it? And she's supposed to focus this little 32x32 cursor on the correct place on the screen?