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Squilliam said:
For me it was Milo, that was completely unexpected. Halo: Reach made by Bungie was another unexpected announcement given so many leaks/releases to the contrary. Left 4 Dead 2 was unexpected because the game was only released last year. The Nintendo heart monitor was unexpected. Sony GT5 PSP for me was unexpected. Metal Gear Solid Raiden wasn't a surprise but it was unexpected. Yep, there were a lot of unexpected happenings.

I don't think this is a thread to say what we thought was the biggest surprise at E3, we all have to comply and agree with the OP.