As I was saying in OOC earlier, there are two big flaws with the idea that this is going to be groundbreaking or game-changing in any significant fashion.
1) The aforementioned one-second server ticks. I don't know how twitchy the movement will actually be until I get a chance to play with it on Sisi, but my suspicion is that however twitchy it is, that tick is going to screw with a lot of the 'finesse' piloting that works with mouseclicks.
2) The EVE client only accepts (and maps) input through two sources: keypresses, and mouseclicks. You aren't going to be doing anything fancy like assigning a joystick axis to a range of directions like you would in a flight simulator; you're going to be assigning a simple on/off keybind to WASD or whatever you prefer. That means that CCP is going to have to determine a "keyboard turn rate" for each ship based on various stats, and that is the ONLY speed your ship will turn when you press the appropriate button. There won't be slight jinks or hard turns - you will be changing direction at one rate no matter which direction or how hard you push down on that key. The only thing that'll change that is how long you hold the key down. Pres butan, turn ship. Let go of butan, stop turning. That is the only control you'll have, and it's not as much as I think people are expecting it to be.
I'm expecting it's actually going to work better not for small things like frigates, but for cruisers and up, based on these limitations.
In the end, it's cute, but it's a gimmick that is likely intended to stave off the whiny "b-b-b-but I don't wanna click to do things" people leaving the game after 5 minutes. Arguably, if those people used the movement control scheme as a reason to stop playing, odds are they weren't going to stick around very long anyway even if it ceases being an issue.
Edit: Played with it a bit. See the above (unchanged) post for my review of the feature.