The Milo presentation was full of "clever tricks" ie smoke and mirrors as the skeptics have been claiming.
It's a remarkable illusion, even if the entire thing wasn't completely pre-scripted and rehearsed.
But for those who instantly bought the illusion as a working model (and maybe even still believe it was real-time "real"), consider the feasibility of being able to create something that polished (the demo essentially showcased a finished, working product) with so little time. Natal development kits simply weren't available long enough to come up with something that complex.
Case in point, during the live (not video) presentation, the MS host showed how unfinished the recognition coding was with his "ever wanted to see the bottom of your avatar's foot?" demonstration. That was believable because it was flawed and showed a work in progress.
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