OMG MEGATON!!!
Nice catch OP, but unfortunately you have too many Molyneux haters on this site. Can't say its undeserved though - all we need is the 'best game ever' from him!
Seriously now; He also said Fable 3 would use Kinect and that didn't happen. Since'being on rails' is one of the main limitations of Kinect games I would have assumed Lionhead would proudly show us how they solved the problem. Since they didn't show us I'm going to have to say that I don't quite buy it yet.
But, as always, we'll be looking whether Lionhead and Molyneux are worthy of the hype that surrounds them. I would be very surprised if they pull off a killer app, but I'm not discounting it. Maybe 20% chance of being true AND not lame.