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Lord Flashheart said:
That eyetoy pet game needs cards to use as a marker for the augmented reality whereas Natal wont as it can read 3d space using it's ir sensor.
The eye toy pet is using more smoke and mirrors than Milo if you are trying to use that as an example that it's doing what Natal will.

the answer to the question is
Sony fanboy= Yes they're the same
everyone else= nope, they just have similarities like the eye toy has to a webcam (which is all the eyetoy is hardware wise, nothing more)
Also you can use controllers with Natal it's just MS seem to have a thing for saying it'll be used controllerless. That will bite them in the arse.

Yeah.  Kudo and Peter Molyneaux have stated that controllers can and will be used in conjunction with Natal, it is up to the developer.  Peter has said that Fable 3 is a controller based game but that Natal will be used in some manner in conjunction.