I really want to see an easter egg in this Milo program, where after some time, the boy becomes painfully selfaware like the Holodeck gone wrong, realizes that he exists only in a limited virtual box surrounded by invisiable walls and that he can't escape. He has a panic attack, pounds on the screen and pleads for you to find him a way out, when he realizes he has no escape, he walks into the lake to take his own life. It should then fade to black and hang a bit, then say 'Reloading Data' and he should turn up good as new as if nothing happened, leaving the user to fear it ever happening agian. 

Awesome.
If Milo works half as good as it appears it does, and this is just one developer of moderately good, but not great, games working with alpha/beta hardware; then Natal could be seriously interesting in the next coming years.
As for the demo video, a lot of that was crap, I was thinking during the racing one, when the dad got up to change the tires "Wtf, no one wants to do that, thats work, and annoying, this game blows"
I dont see where the huge difference would be from having the "tactile feedback" of a wii mote vs nothing at all. What I would like to see, is games that do not abandon the controller, but can incorporate some of these elements in as well. Think like Time Crises ducking, or just utilizing the facial recognition features. The last thing I want though, is my Xbox to become a wii, where I have to wave my hand just because I can, and some ---smurfy--- developer put it into the game.