Thing with a joystick is that they're big, cluncky, and your hand position on them isn't like any other control out there. I'd rather duel-wield a gamepad and mouse, to be honest XD
That little analogue stick beneath the thumb, taking movements of up to 1 cm or so to control max-min responses, is much better than a full joystick, where you need to twist your whole hand through a good 5cm or so, for quick, responsive control. But I see where you're coming from.
As for looking around in games separately from the cross-hair, there's a TrackIR system that does that on games like ArmA2 using a sensor and a head-mounted gizmo. Looks kinda cool, but lacks support and is far too expensive. Move and stuff looks kinda neat, but there's going to be problems with the player in an FPS turning and moving through environments - is he going to be moving with a joy stick or what? Does he aim manually with the controller on the screen, as in a light-gun game, or does that turn the whole screen? How does the crosshair work with that? I dunno, it's going to be interesting to see how it all goes, lol.