Another problem is controllers. The mouse is a pretty poor 3d manipulation tool. Actually, that doesn't seem that much of a problem. Say, a two-button mouse with a wheel, such as are pretty common on the market today. Hold down the right button, you can move side to side or up and down. Move the mouse without holding a button to move the pointer within your field of view, and move the wheel to go forward and back along your line of vision. Seems pretty straightforward. Althought the rest of your points seem valid, at least at first glance.
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Another problem is controllers. The mouse is a pretty poor 3d manipulation tool. Actually, that doesn't seem that much of a problem. Say, a two-button mouse with a wheel, such as are pretty common on the market today. Hold down the right button, you can move side to side or up and down. Move the mouse without holding a button to move the pointer within your field of view, and move the wheel to go forward and back along your line of vision. Seems pretty straightforward. Althought the rest of your points seem valid, at least at first glance.