I saw this at the crack o' dawn this morning and I have to say that I'm feeling some trepidation, it seems almost like back-pedalling in a way when you see what the Kinect is doing already. But that seems to be Nintendo, when everyone zags they zig.
I guess when more info is out it will more easily solidify in my mind how or what this is and what it means, for now it just seems like something designed to take my eyes of the big-screen action, which is exactly the opposite of what I want as a player.