http://www.youtube.com/watch?v=EwOUi4JDC4o

At ~1:19 there is a UI which appears to be interacted with via a circular cursor.

1. Consoles don't use cursors
2. The circular cursor reminds me strongly of a display of where someone is touching an iPad screen in trailers and an iOS mockup tool.

I'm wondering if there's actually a full-on mini-game (such as a flying game, as it's shown around then) which will be playable via tablets and smartphones if not consoles.

This is entirely speculation. The cursor may have just been a useful UI element purely for the trailer, but it's a discussion point IMO nevertheless.

Good points though, there are a few games that do that kind of cursor even on a console, but it is rare, and is often only on ports (Minecraft for 360 is an example)