The problem isn't patents themselves, it's patent lawyers and the patent office not doing what they're susposed to be doing. I'm pretty sure I've said this in every patent post, but you're susposed to have very very detailed schematics and technical descriptions on what your patent does, how it differs from other (usually pre-existing or common use) products, and basically have every single aspect of it mapped out in plain detail. If your patent isn't specific enough (say patent a seatbelt as a 'automobile restraint device" and it doesn't get filed. The problem is that patent lawyers hire experts and take simple processes and explain them in a vague enough way so that they can apply to many similair processes that do the same thing. The patent office officials usually don't have enough knowledge of that specific aspect of that specific field to properly recognize this and a lot of shit slips through that shouldn't.
I don't know anything about this technology or really anything to do with it, so I can't comment on it at all. As for the Immersion Technology patent cases, Nintendo was never sued. Originally they used their self-developed rumble technology, and then later moved on to technology they licenced from Immersion. Microsoft and Sony were both accused of patent infringement. MS settled out of court, and Sony lost the case. It isn't something like "oh this controller rumbles....we patented that!" It's more of exactly how it's done, and from what I've read, the case with Sony is that it's a direct violation....not something that could be construed as they just developed a very similair technology...they almost blatently ripped it off. I'm not an expert, I don't know for sure, but that's what I've read.
Anyways, yeah patent law is getting somewhat ridiculous, but it's not nearly as bad as most people on the internet seem to think it is. Cobra, however, has an excellent example of patents which should not exist with his flashing curser story.