History of computer mice, trackballs, trackpoints, and other pointing devices

I know about Douglas Engelbart's Mother of All Demos in 1968, but how did we get here from there? How did the industry converge on the two-button plus scrollwheel design, and what interesting devices failed to catch on and why? What happened to joysticks and trackballs?

Bonus points for connections to control theory and an explanation of performance analysis for pointing devices like latency and overshoot.