Sammy, you're not thinking big enough. Project Natal is ever so much more than a body controller. (and no, I wasn't fooled by that scripted Milo video
Watch the little videos here: http://www.xbox.com/en-US/live/projectnatal/
Now think about coming in and sitting down, being able to control your TV/DVR/movies/sound & music/room lighting with your hands or words and no remotes, and while watching a sweet new film, you see a particularly awesome sequence (think of seeing Neo dodging the bullets from the agent in The Matrix on the rooftop for the first time) and want to share it with a friend. With a word or two and/or a hand gesture or two, you're looking at them if they're already in their living room after accepting your video chat request and you go "hey, check this out" and you share a clip by saying show <friend's name> this movie from 46:30 to 48:17 and it shows them that portion of the movie as a preview, and they go "wow, that was awesome" and they buy the movie or watch it on Netflix right then and there, if they want.
That's a small example of what could be done with Project Natal, if it gets developed properly; it'd be able to integrate almost anything together. One of the best things in those videos for me would be the trivia gameshow; I love trivia games. You could even turn on your computer (wake on LAN through your router) and show your computer screen on your TV and do whatever you want with the computer via that if they develop software for it; a nice network HTPC via the 360, no mouse/keyboard required.
There are infinite possibilities if this device will be made well and reasonably priced; almost everything lies in the hands of software developers for it. If they do things right, (I have high hopes because they've gotten to practice with a much more limited system with some of the same concepts; the Wii) this could be revolutionary. Steven Spielberg is already looking to make some parts of new films interactive with this. (think of the Choose Your Own Adventure books, at certain points you could choose between different choices the film's characters make that are available that they've filmed...choosing your own ending to a film based on the choices you've made, pretty ambitious)
Get the picture? Things like what I just mentioned are why there's so much press surrounding Project Natal. If it's done right, it could change the entire world in some fundamental ways.
Everyone hope that this doesn't get ****ed up.