Its advantage over the Occulus etc. is that you can share a 3D simulated space, in augmented-reality mode, with other users -- the gameboard demonstrations are an illustration thereof. And it's a fairly inexpensive way of achieving AR/VR.
Touch surfaces only allow 2D input. This package is giving you an input device more closely akin to the Polhemus "space mouse" -- though I'm not sure they can deliver the orientation information needed for full six-axis control. (On the other hand, folks have gotten better at deriving cues for that from camera info, so maybe.)
Traditional displays are 2D output and require that you interact through another device, which may be nonintuitive/counterintuitive for the interaction you're trying to perform. Of course their wand isn't going to be right for all interactions either, which is why they also designed in the RF transponders; see previous paragraph.
Whether it's "a better option" depends ENTIRELY on what you want to do. But you could say the same about color monitors.