What's the word for controlling/inputting without actually touching the device?

I'm writing a program that allows user to emulate keyboard and mouse using an array of sensors that are put on the user's wrist, so that the user can control the computer without having to come close to it. Is these a general word for such input model?

The appropriate term is gesture recognition. You may read the Wiki article to find other variants, e.g. gesture control. In general, everything still falls under remote control, which enables users to control the computer [or other device] without having to come close to it (using your own words). The specific example you mention, however, deals with gesture control and recognition.

Here is one excellent example from a CNET article: Gesture control is the new touch.

You used the general term in your question, and it it is to control the computer.

What you describe is very similar to VNC where a remote input client is hooked up to a computer running a server. The client controls the server.

"Gesturing" would be the verb for the user action, analogous to "typing" with a keyboard and "pointing" and "clicking" with a mouse.