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A realistic swordfight would be amazing. Perhaps if Wii Motion+ or the like keep improving...
And come on, never say never. Lets not forget that forty years ago produce 1 GFLOP costed like 1 trillion dollars. Five years ago was US$ 640. And now is less than half a dollar. Budget-wise things may not get better, but things like that will never be hardware constrained for much time.