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WereKitten said:
^With a proper acceleration curve people can easily use a mouse or trackpad over a few inches of real space to map a computer screen at pixel-scale accuracy. Usability-wise moving your forearm from your hip over no more than say 60 degrees per axis is much less tiring than having to move your hands all over a huge virtual vertical plane.
But of course only time will tell, though I'd have thought that a shooter or RTS would have appeared among Natal tech demos if pointing implementations were trivial.

Keep in mind that Natal is measuring your hand position.  Moving a tiny amount with your mouse is much, much different than moving your hand a tiny amount in free space.

And there aren't tech demos of shooter(other than that Half-Life video) or RTS games as Natal is not aimed at that audience.  95% of games launched at release will be casual/party games.