You summarized the problem and my thoughts accurately. Now, how/why on earth would a sensor manufacturer develop a product with such a hair-brained interface? Next, why would any company in their right mind select this component for inclusion in their product design? This seems like a monumental gaff. Do you think Microsoft would have done this with the Zune? Do you think Apple would have done this with the iPod or iPhone?

IMO, it's just more fodder indicating that Google, despite intentions, is just very half-assed. I can see it in all their software and the larger they grow the scarier it's getting. I'm sorry if I'm getting too hyperbolic.

If the reporting interface of the sensor can't be addressed in software, this is likely never to have a fix. This puts a lot of multi-touch abilities out of consideration for developers. And without developers, the platform isn't going to thrive. Android needs a better foundation of hardware as everything that's out there now needs to be replaced with something more unified and better specified.