If they can perfect the technology it will be a huge success. Maybe not on the 360 but in future consoles you can expect both Sony and Nintendo do adopt the technology.
Seriously people, this is the 1st step in what most of us techies and gamers dreamed of back in the 80s-90s. If any of you have seen Minority Report, this is basically the 1st step towards that type of computer control scheme. This type of tech can easily be adapted to replace almost any type of controller and can easily be adapted to create projector-like keyboards and mouse pad.
Lastly, you can bet that MS isnt only making this for consoles. They still have a PC empire to look after.