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It seems like what the video did with the skateboard would be really easy, actually. I mean Rainbow Six Vegas had the ability to map your face to your character with just a cheapo Vision camera. Natal will have that combined with the 3D mapping ability.

Also, who says it has to be a perfect replica of the item scanned. The video was just a concept video showing things Natal COULD do. Maybe to a slightly exaggerated extent but I see now reason why games using Natal could not do this. They could probably even develop some code that converts the image into the game's art style so its not just a picture pasted on an object.

So I guess I don't see where Cage get's his beef from. The only thing that seemed far fetched was the red laser thing that it showed capturing the board, but again that was just for show so you knew it was doing a scanning action.