it's crap.
They promised so much. Most of what you saw was scripted or fakes (Milo was played by a puppeteer for example, FACT) and the thing just won't properly work for real games in the near future. The promo video is just nuts, especially considering the live on stage demo (the only non scripted thing) was a rudimentary painting tool which wasn't too exact by the way

And voice recognition is a gimmick anyway. YOU WILL NEVER BE ABLE TO TALK TO YOUR GAME.
Tom Clancy's End War is all that will ever be possible in that regard.
Ironic, that Sony showed their own motion controller, live, non-scripted, just showing everything that MS just promised. The Sony one will deliver. And, it's a controller after all, which will always be superior to every gesture system MS can come up with.
It will be a huge failure money-vise, since the Wii already rules the market but the thing will deliver.
You saw that Sword part? Tipping it on the skeleton's head and then knocking it over?
The Sony one could rock.
MS, while maybe more innoative, won't.