Well yes, these days there is a lot more interactivity with games compared to other years. Since Iv been in Uni it started as the Wii being the King Of This Hill with the use of people physically moving around to scroll through windows and menus not to mention the game play but quite recently Xbox and PS3 Have Released Kinect and the Playstation Move.
I am yet to try these out but from videos and Tv grabs they are pretty sophisticated, more impressed by the Kinect tracking body movement as the psmove is pretty standard in comparison. The old question of when Virtual Reality will be developed is becoming sooner and sooner, maybe not in the recent coming year but certainly within the next 10 years. The gamepads as iv mentioned are becomming more slender (Even now Im using a keyboard with a curved design to prevent hand strain) basically following the forms of the body. Although it may sound sci-fi soon there may even be an entity that adapts to the curvature and shape of the person wielding it.
Not only to mention gaming input devices the actual games have become ever interactive allowing more things to be done but with the lack of buttons/input directions its starting to reach its limit. Things such as press A to open cage, to Pressing a combination in Call Of Duty for arming a bomb. Quite standard in these present games but in comparison to Super Mario on the snes its come a long way. It greatly depends on the type of game.
Obviously with the introduction to these interactive features in controlling, Game Design will change opening doors to new ideas and ways of player controllability.