I think that the number of PS2's and DS's sold (not to mention Wii's to date) say this is not the case at all. But what's he going to say? Hey, more people have played with a controller and buttons than anything else and we're taking a big risk removing it?
I think he's stretching his statement if it's based on a very young child's wondering why all games don't use all the buttons.
Kinect is an attempt to out Wii the Wii to get 360 to a broader audience than the console on it's own, like the Xbox before it, has struggled to do. It might work, but TBH I really doubt MS have stumbled upon the golden fleece of gaming here.
It just doesn't have the elegance of the iTouch/iPhone/iPad as an interface for me - all of which are devices successfully removing the buttons. Although I'd note they're simply replacing the buttons with a different interface that does the same thing. Kinect doesn't really seem to offer this - i.e. it doesn't replicate existing controllers very well. I'd also note that in my experience the iTouch, etc. have clear limitations for gaming and Kinect looks to be the same.
With the amount of remotes and tech in most peoples homes, and a generation that's already grown up with PS2's, DVD Players and the like I think there is simply a lot less technophobia among the potential audience for gaming than he implies.
Try to be reasonable... its easier than you think...
