Steven,
When blowing the whistle, the last thing that the official normally does is put air in the whistle. Before that, a hand or fist is being raised as a mechanic. By blowing last, it gives the official one last split second to reconsider what he/she has seen and maybe allow the game to continue.
The way you described your PRODUCT, whenever a fist was clenched around the sensors the device would sound. This would take away the last chance for making a call that should not be made.
This would be a product much more feasible for other sports, such as football or volleyball, where the action is dead normally before the official needs to sound his whistle.
I would not consider using this for basketball, unless it was hoop-it-up.
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