This is probably a weird, near blasphemous idea..
It came as I was thinking about antenna geometry and its impact on linearity - I have often noticed that long, thin antennas seemed to improve linearity - and although I have never verified this, I have a hypothesis which works - I believe it is the angular capacitive coupling to the arm which offsets some of the rapid change in capacitance as the hand approaches the antenna.. I could write a mini thesis on this probably, but I wont.. ;-)
The diagrams below show my crazy idea.. Have a floor standing box or enclosure or whatever, into which is fitted a shaped "antenna" (this could be a tube, metal strip, wire, conductive tape - whatever.. With correct shaping, I think one could create a perfectly linear response.
The hand / arm could be slid on the top of the enclosure - and pitch should then be a linear(ized) function of the total arm and hand capacitance overlapping the shaped antenna.
If the hand / arm are raised above the top of the enclosure, total capacitance will decrease and pitch raise. Linearity would only be truly maintained (I think) if the arm / hand are resting / moving on the top of the enclosure..
No antenna equalization would be required - this idea should work fine with simple RC oscillators, and as one could make the "antenna" a thin metal strip of whatever width (as long as it is thinner than the arm) one likes, could be well suited to low cost implementation.
The above diagrams show a system where the arms capacitance is included - but I see no reason why the antenna could not be shaped such that one could slide the hand over the top - as in, playing it somewhat like a ribon controller.
Fred.