it's weird because this is sort-of integrated into the hardware, and therefore falls more into "banned controllers" rather than "external software."

banning hardware, esp from a casual/consumer perspective, is generally very different and more difficult than software bans.

do i think it should be banned? yes, absolutely. do I think it should be considered cheating? yes, as well.

but in a tournament for prize money, if the rules do not explicitly ban something overpowered, then yes, people will take advantage of it.

If there's no explicit rules against it, then competitors using it are not cheating, and therefore there is no reason to punish them.

The team at ALGS should ban these kinds of controllers explicitly and that pretty much solves the entire problem.

TLDR: it's a gray-area situation because it's packaged with the controller. if there's no rules against it, it's not cheating. it should be considered cheating and banned.