Yeah, at best I suspect this would be gen 1.5.
I'm a little disappointed with the ginormous wand style controller though, I much prefer the rifts touch since the controllers don't extend past the hand themselves.
But I much prefer the tracking solution from Valve, ideally the touch controllers would have lighthouse tracking support.
Then again, I almost expect the third party controller market for lighthouse tracking to explode, the tracking pucks, manus gloves etc etc etc.
So I guess it's small problem.
As for the hmd itself, I like the sound of it, especially the flip up part.