A gesture-recognize video camera is actually a very cool idea. I've been to demos before that show off the ability of a game to respond to movement, whether it just be simple hand gestures via a worn glove or optical sensors that react to physical movement. Many of these have been bulky or obscenely expensive, however, and it's encouraging to see this possibly being introduced to the home environment. If they can prove themselves just once, people will begin to accept them.
A host of new games are also being released for the console. As the article mentions, Microsoft aims to steal as much thunder as possible from Sony.