"Yes its pretty neatl and yes it most likely lacks a big target audience."
I don't know which of you have kids and who doesn't, but I allready hear the sounds of kids telling mommy / daddy that it's the pet they want for christmas or birthday.
And it might look lame if you're used to Gears of War, SOCOM or Resistance, but take it from me: kids can spend hours and hours day in day out playing the same game.
One of my kids is 5, and I was amazed how much fun he had when he was 4 and playing 'Antz' and 'A Bugs Life' on and old PS1, the same part over and over again. Children live in another world at that age.
Trust me, there's a massive audience out there once you know how to reach it. I guess they'll put some kiosks out there where you find a lot of children. Install the screen + camera on the best height, and that little pet wil do the rest.
Children will notice it, understand it, play with it, and then they want one at home too, and it will be the best excuse for dad who allready wanted a PS3 
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