For context, velocity control refers to the way the intensity of the input increases the stick further from the centre. Like the way your character walks when you push the left analogue stick halfway and runs when you push it all the way. Or when the camera pans slowly when you push the right stick halfway and quickly when pushed all the way.
This Nvidia patent does make a lot of sense. After all, some games are better experienced with a controller, while others with keyboard and mouse. This serves as a supposed best of both worlds, especially for the console scene. That being said, it definitely won’t be replacing the KBM setup. It also remains to be seen if this is something that will actually be sold, or just another patent filing.