It looks pretty cool, but I think you're praising it bit too much.
One issue, no buttons. It's going to be hard to get a fully body oriented game without any means of moving your character. Unless you want to walk in place...ugh...no thanks. Theyll probably end up doing a lot of standing in place type games (which they can do on a balance board)
of course for me I prefer having something tangible to play my games with. Dancing around in my living room doesn't seem very appealing...
Plus, first person shooters would probably be impossibe with natal. Unless it's more advanced than I thought, I don't think it can pick up every twitch of the finger.
Of course that's not to say I hate the whole idea. I have high hopes for the emotion sensors. Those could bring real depth to some RPGs, and psycology could actually play a part in thrillers. Upcoming games like Alan wake could really benefit from knowing what gets your pulse racing. And full body motion could work out if it had a self moving character.
Surfing and skating games could be a lot more involved, grabbing rails and spinning, a lot more than can be done on a balance board.
I'll see how this pans out. Some excelent titles could really get Natal moving, but an excellint pack-in title will be essential to get this started. Think Super Mario bros. 1/duck hunt and wii sports were needed to bring them to a mass marketed success.
Of course, I need to get a 360 by then
