Oh that is very very cool. I think something with the kind of quirky rotoscoped animation like they had in the original prince of Persia games would fit so well on this.
Now that I think about it. A remake of the original prince of Persia would be such a joyful experience with the mechanic you thought of.
Yeh that rotoscoped style could actually work pretty well, might be a bit difficult to do with the 1-bit screen, but I think its certainly doable.
I think in general the most interesting games will be the ones that don't actually use the crank as a crank if you know what I mean. Like analog sticks are used for movement, they arent used to operate an in game equivalent of an analog stick.
Now that I think about it. A remake of the original prince of Persia would be such a joyful experience with the mechanic you thought of.