Softube Console 1

Cakewalk are already heavily invested on the VS700 series controller and interface

I don't think the VS series paid for themselves and they certainly weren't a "hit", even tho they were very good.  Cake also put out a controller of sorts many years ago - it didn't take off either.  About the only successful controllers are universal ones so any DAW user can use it and not be short-changed by a small user base.  But the easiest controller to use is one designed for specific software - like the softube one.  One controller for each function, just like an analog desk (and yea, I know there are submerged controller functions, but most of the functions are one-to-one).
 
And as you state, physical knobs and sliders are kinetic in a way virtual controllers ain't.  The best solution, sort of a uncommercial physical controller, is a touchscreen combined w/ limited knobs and a moving fader.  Touch the eq band on the screen, and the knobs get latched.  Touch the on-screen fader or just a channel/bus, and the fader is assigned.  Touch the Osc of a softsynth, and voilia, the knobs get assigned to the revelent functions.  That is something I'd like to see Roland put out, w/ a template for SONAR.  And expandable for those that want more moving faders, damn the cost.
 
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And therein lies the problem with hardware devices. Hardware lasts a long time and unless you can keep the hardware up to date with new software, they quickly become outdated. Companies will only update the software for a limited amount of time because it becomes too expensive to support.