Late to the conversation and been away for a while, but I noticed this post because I had just been thinking about this.
Due to busyness and traveling a lot, I've not been playing much lately, but started practicing again last week. Thankfully I don't seem to have gotten too rusty (like the old saying of never forgetting how to ride a bicycle.) But it I found myself as more of an "observer" of my playing than before my hiatus, which is probably temporary but interesting.
And one of the things I noticed was that I've never looked at my hands much since my early days trying to learn - in fact I suddenly realized that, looking back, it was after I stopped watching my hands that everything "clicked" and I started getting the hang of it.
It seems counter-intuitive - since the position in space is so important, visual feedback should be useful. But watching my hands seems to make the subtle moves (like half-step note bending, which I do with my pinky) overshoot the pitch.
Somebody here mentioned "theremin stare" and yeah, that is what happens. I'm staring off into space but not really LOOKING at anything.