Have a look at the footage of Forza 4 Wireless Wheel hands on footage by Alan from Team VVV. Looking at the footage at 3 minutes in and 10 minutes in, you can see that the difference in wheel response is alot quicker using the Kinect Wireless Speed Wheel
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The wireless wheel does not work well for changing gears manually.Breaking, Accelerating,Turning and changing gears not attached to anything but air does not bode well for any serious hardcore purist, but the wheel works well in automatic and will appeal to who it was designed for, the casual.
The Wheel has been reported to be well made, and Alan is greatly impressed by the Handling, i suspect the reduced lag has greatly improved the handling performance as well.
Alan tested out a Subaru and Ferrari in the demo
Looks like the wheel is very well made, and the buttons are similar to that of the xbox 360 controller, This wheel rumbles but its not a replacement for the feedback a steering wheel gives you by any means, The tactile feedback is not enough when driving without any driver assists as Alan states. However for the casual gamer this wheel should greatly improve their kinect experience with Forza 4. no word from Microsoft on whether the device needs a Kinect to work but i would bet that this is an additional accesory as i can not imagine anyone spending a serious amount of money on a wireless controller when they can get a better experience on a traditional Steering wheel such as a Fanatec. The Wheel will come without any pedals, as everything is controller based, but anything can change