The main reason I see for motion controllers not taking over anytime soon is that they simply don't support the full range of interactions common to most games.
Even the most basic part of any game, navigating the environment, don't come natural when you have to face a screen all the time. Walking or running in place may be acceptable for a fitness game, but I doubt even Michael Jackson would have been able to moonwalk his way through a fully motion controlled GTAIV.
An even more important factor is that a lot of games are about characters with skills beyond our own, and skills we're barely able to mimic. Look at the recent Tony Hawk game with a skateboard-shaped controller - perfect match, right? No, actually very limited compared to earlier games in the series, and performing tricks much less intuitive than simply using a normal controller.
That being said, I'm really happy to see real guitars finally being able to be used in Guitar Hero-style games. What took them so long? For years kids and adults all over the world have become masters of pressing brightly colored buttons at mind-boggling speeds, instead of learning real musical skills that can actually be used away from the screen (of course, now we'll probably have to suffer through a decade of Black Sabbath cover bands).
Edit: Oh, and to actually answer your topic on the death of hardcore gaming - I sincerely doubt it, as long as there are teenage boys in the world, virtual killing and blowing stuff up will remain.
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