I can begin to imagine a world where we manipulate computers instead of interact with them. This idea of being able to navigate the computer world, and have the computer understand space is not new, but its not accomplished.
If it really is possible to get this type of system in a laptop say, without gloves, (even with gloves is fine with me) then we could see the next serious change in computer-human interfaces.
Imagine what it would be like to create a 3d model of say a car, and be able to sculpt the model as if it was real. Even have some kind of actual feedback so you still get the feeling. But then you ask, why is going so digital so important. Well, sure a clay model is great, but having the history, having the undo ability, having multiple collaborators around the world, all these are possible in a digital world.