Maybe I'm paranoid but isn't he basically saying that the demos don't reflect what's possible today in a shipping device i.e. the proverbial "vapourware".
Other comments, here and elsewhere, reflect everyone loving this, yet when I watch the demos I think a) that's not actually possible, and far more importantly b) even if it was possible, it doesn't look like fun.
I was watching the conference live, and I had the same reaction: "There's no way this actually works." Then they brought out a lady who did a live demo with it... I can't find that video right now, but it was very similar to this: http://www.youtube.com/watch?v=L3vWzzoLHrM
Notice how you can clearly see the on-screen body mapping to the person's body. Between that and the fact that I doubt they would make such a big announcement if it didn't already work fairly well, I'm now on the "this probably works" side.
Well, I don't know that it really matters. If Microsoft knows what they're doing, the only way they're going to release this thing is either bundled with a game that's expected to be popular, or as a part of the next Xbox.
Console perhipherals released in other ways have historically not been successful, no matter how good they are.
Given this, I'd bank on them shipping the thing with the next Xbox. That should give them a few years to work the bugs out.
Want to clarify and expand on (a) for us? Impossible is a big word.
As to (b) - The voice recog Buzz looked pretty amazing to me. Some of the mini games - not so much... The face tracking stuff was cool though.
(I think MS might be setting themselves up for a fall though - I agree this comment makes it look like this tech wont work as well as the ad makes it out to be)
Other comments, here and elsewhere, reflect everyone loving this, yet when I watch the demos I think a) that's not actually possible, and far more importantly b) even if it was possible, it doesn't look like fun.