For beginners, watching your hands is crucial;  –remember learning your first G chord on guitar?  But some of us never get over this habit of visual finger/hand placement.  It’s really hard for beginning keyboardists;  they’ve got as many as 88 different locations to memorize (or more, if they’re on a Bosendorfer).  I do use my peripheral vision for extreme things (jumps of 2 octaves or more) , but for everyday playing, I don’t need to place my hands using my eyesight.  In fact, just give me dark sunglasses and let me find the groove.  I’m speaking to drummers, too.  You don’t need to look at everything you hit.

Beyond the break there are 2 videos that prove my point.

Stevie Wonder in the studio in 1973. 

A really old video of young Stevie Wonder playing a mad drum solo.

If it won't play, try clicking here:

http://www.youtube.com/watch?v=4SCZv7786KY