I think the most important thing is to make it as quiet as possible. A close second is some form of versatile and intuitive hands-free capability. Those two things would skyrocket the immersion. The way I see it from my experience using several different toys, stroking is most important, followed by a squeezing/sucking sensation, and lastly, a twisting sensation. If you guys can figure out an accurate way to implement all three, and in a virtually silent manner with hands-free capability, you will be gods!
Edit: And before anyone brings up the Syncbot...I do own one. I purchased it myself, and it is not a good example of what I'm suggesting here. It is very loud, the touch controls are not ideal, the stroke length is way too short, and the twisting is too aggressive (ai scripting issue mostly), but it also only twists a portion of the sleeve, not the entire length of the sleeve. I appreciate everything they're going for, and I'm sure it will improve over time with better ai scripting, but the hardware limitations are the focus here. Bottom line: check it out SLR team, but your toy needs to be done better.