Yep, I just watched it too. Honestly, I would have rathered pay $300 for a Wii with more competitive graphical horsepower than $200, but in the end it's by far the system I'm most excited by (followed by PS3 with X360 in a distant third). I think it's hillarious that Nintendo is sticking so doggedly to the name. When addressing the name for the first time in the conference Reggie Fils Aime said (speaking to the press) something like, "First I'd like to thank those of you who wrote good things about the name when it was first announced . . . both of you." Zelda looks unbelievable. Red Steel looks like it could be absolutely fantastic, but I was a little concerned about the control. It looks like in order to turn you have to move the aiming reticule to the edge of the screen, rather than have something more akin to mouse-look on PC first-person shooters. It seems like this was done to keep the screen steady for a shooting experience that was kind of a cross between a first-person shooter and a traditional light-gun game. But it looked like it made navigating around corners and stuff a little sloppy.
Anyway, they showed a slew of other games, many of which looked fantastic. There will be 27 games playable on the show floor tomorrow, with even more shown in video-only format.
FWIW, Sony unveiled their new controller which underwent a redesign after the one they showed a while back that looked like a boomerang was universally hated. It now (surprise surprise) has a 6-axis motion sensor in it. It also looks exactly like a dual shock controller (for the love of god Sony, please please please swap the D-Pad with the left analog stick. This is no longer 1994. 95% of videogames are 3D!). Oh...and it doesn't have rumbling anymore, thanks to a lawsuit.
Which reminds me, there are some more innovative details about the controller recently revealed. Apparently Nintendo is unaffected by rumbling controller lawsuits (or is paying royalties) cos there's DOES have rumbling. Also, both ends of the Wii controller have motion sensors (analog stick attachment AND the remote-looking thing). And it has a built-in speaker, so when you are firing an arrow in Zelda, for example, you will hear your bow tighten and the release of the arrow and then you will hear the arrow embed itself in your enemy's chest on your speakers across the room. Or when you're fishing you can hear the real coming from the controller, rather than your home theater speakers. Pretty cool!