It does look interesting. Still, I can't see removing traditional controllers entirely being a good thing, there's only so many different kinds of input you can do with body gestures.
Besides, it's a lilttle foolish to compare this to Wii Sports' Boxing of all things. Yeah, maybe it is better than Boxing (the sport many feel is the weakest of the bunch). How about Tennis, Baseball and Bowling? You need to hold onto something, else it wouldn't feel natural, correct? How would you play Mario Kart Wii with this thing? Or, if that's not possible, then what would be the next Mario Kart Wii?
Basically, I don't think the camera alone is enough, you still need a physical remote for most games. If it doesn't cost so much I can see it being a worthy addition to next-gen consoles though.
edit: I also wonder how convinient this camera is, can it view a wide enough area to get the whole living room? Can it correctly determine which person is which in local multiplayer games? I imagine there has to be some technical difficulties.
