I think you're being too pessimistic. Sure it ain't going to be what the most hopeful of the hopeful want it to be (somewhat like the Wiimote, only more so). Nonetheless, I think this thing has a ton of potential. I'm skeptical that it will see any real developer support, so it's likely wasted potential, but that just makes me so much more sad.
But I have to say that I wasn't all that impressed with Milo.







