Point and click with pixel precision with a stick? Lol.
stick: press and hold stick, and wait.
mouse: turn 180 degs in the flick of the wrist.
I don't know how people can tolerate "press and hold" turning in console FPS games. Analog stick or not, it's as bad as keyboard turning.
I don't know why the thumb sticks on controllers haven't been replaced with thumb sized trackballs yet... would be a huge improvement in point-click stop-start on a pixel precision. You turn as fast as you want to turn, not at JOY_X / 128 * MAX_TURN_SPEED. I also don't like the auto centering and the need to hold the stick under tension to freeze your point of aim, as when looking at the sky. This too is a limitation of the sticks finite range unlike the infinite range and wrap around of a mouse/trackball and the inability to recenter a stick as you would when you pick up a mouse and set it back down.
Third person is irrelevant. It's just the camera backed out and a player model drawn on screen, play is damn near the same in that you generally ignore your player avatar and focus on the crosshair centered on the screen as you would a FPS.
You're looking at one specific example in that camera movement is centered around one singular point, the aiming reticle/crosshair; which independent control of is much better with a mouse of course. However in games like Prince of Persia, Darksiders, Bastion, Ocarina of Time, God of War, Assassin's Creed, and others where you do not have manual camera control (essentially your reticle is nothing more than where the camera is pointing) it creates a situation where you do need to have less limited control of your character.
If you do have complete camera control, then WASD is a perfectly acceptable movement scheme. However if the camera is automated than WASD is nothing more than a glorified D-Pad limiting you to only moving in one of eight directions at any given time. A joystick in that same scenario removes this limitation, which is why it's more precise compared to KB/M in some games.
Never used a track ball though, but I feel like as long as you have enough room to move your mouse I would prefer the tactile 'feedback' of the actual movement.
Edit: Also at no point in the article does it say "Keyboard and mouse will not work at all". Not investing in it simply means it won't be undergoing a lot of development, so you may have to deal with a lousy default control scheme, lack of buttons being correctly referenced (eg: "attack button" instead of "q key"), or support for fewer mapping options (eg: Bastion supported gamepads, keyboard, and click to move by default). But I think there's no way they'd disable support for keyboard/mouse entirely, assuming that would be the case is even more retarded than the idea itself.