Yup... consoles are meant to be played on your couch... period. Been here for over 10 years, you'd think I wouldn't have to say it anymore. 
Pffft...hit a score of almost 400,000,000 on PFX2's Spiderman Table last night
standing in front of a self-built pinball controller 3 feet from my 65" plasma. Yeah, my feet were tired after standing there for an hour, but I would never have been able to do that sitting on the couch.
Some games are meant to be played standing up, regardless of the platform they are on. And sometimes even those which aren't just play better that way. But probably not with the original controller, tethered in some unnatural location away from where you would normally want to hold it. Doesn't mean the idea is bad, just that one could probably improve it and still get the same desired effect.