The main problem is that it's just that - a touch sensor. You still need a separate device that will contain all the other pieces - processor, battery, IMU, connectivity, etc. Once you make that device and wear it - you might as well integrate the input mechanism into it, why bother with using the fabric?
Better yet - integrate a screen into it as well, do you don't just have an odd, input only device, but you can actually see what you are interacting with. Oh wait - at that point you've just re-invented the smartwatch.
Can someone enlighten me on what is a killer use case that is actually better served with the Jacquard technology?