[alwaysinshade]

> Is the custom hardware so fundamentally critical to the experience that you couldn't provide it otherwise?

You could spin the question around and ask why do point & shoot cameras (analog: consoles) or SLR's (analog: PC's) exist when you're always carrying a camera in your pocket? The answer is level of control, depth of experience and quality. Such hardware will be used by enthusiasts, whereas those who just want something to snap selfies, dinners out etc will stick with whatever is most convenient.

I can play games on my phone anywhere I go but they lack the richness and intensity of playing a multiplayer FPS or RTS game on a stable wired connection and dedicated controller.

A way around this was mentioned in the article - tactile displays. A display or bezel that can raise parts of its topography into customizable shapes that react to touch. This will largely solve the input issue. It might even make it better than the fixed human-machine interface like a controller because it provides freedom for the developer (or user) to craft the input mechanism to perfectly suit the game/app.