>The down side is that it made games super hardware-dependentSlightly off-topic, but: it was the most important upside - the game could conceivably be optimized for the characteristics of the controller(s), and in some cases, display (hello, Nintendo DS).
Now that cross-platform portability is the name of the game, most games tend to have bland control schemas, pretty much the lowest common denominator of (XBOne, PS4, PC with mouse and keyboard). Playability suffers. Granted, there are still some hold-overs, among them flight sims, but that's mor of a niche thing.
But by and large, we're in bear part of the cycle of game control innovation.