I've seen one of those on Beyond 2000 quite a number of years ago.
They had little air pockets (like balloons, but specifically shaped and very stiff) all throughout the jacket.
When a signal was sent, within a millisecond, a balloon would fill, giving pressure to that area.
There was also a glove system that did the same.
When you closed your hand, it was translated into the 3D world, which would try to pick something up, etc.
Once you had your hand around an object, the feedback would inflate tiny air pockets in the fingers making the glove stiff, so you couldn't grip harder.
Either way, it's a cool idea, but only for hard-core gamers (the strap-in time would be too much for the casual gamer whereas the Wii-mote is just pick up and play).
