Wow, I didn't even know this existed. Great concept, though from watching that first mission, I really hope the missions get more interesting.
Still, I'd love to see a new Steel Battalion on the HD consoles, though $200 is pretty steep. I don't know if I'd ever pay that for a game. It would have to be better than what that one video showed at least.
I don't know if this could be what Capcom are teasing us about with regards to Natal. It could be pretty cool if they made it work, but I really liked the technical stuff, like how he changed gear for example, so I don't know if it would actually work. I suppose using Natal/PS Eye for stuff like camera control with turning your head a bit could work though.