Project Natal: Meet Milo

I watched some of the video being streamed live from E3 recently and what I was most impressed with was Project Natal. This new interactive technology allows you to participate with gaming characters with out an interactive device. Instead you interact using your own body movement and facial expressions. Here is a short video explaining this new technology. Do you think this is the right direction for game designers? Or are they barking up the wrong tree and bound for road blocks and limitations to what they can do with this technology? I personally had a morbid thought or idea for this technology. Imagine being able to upload images and video to create a character based on a family member or friend who has passed away? You could virtually interact with them even after they are gone. Or even better continuously update your own character based on yourself and journal your thoughts and memories and then be able to live virtually after you have passed. Morbid thought aye? But plausible and interesting nonetheless.