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Not a bad rumor round-up. I have to give the source credit for criticizing Microsoft when it was deserved, which wasn't what I expected given the name. If Microsoft doesn't change some aspects of their "walled garden" approach, then you might see some smaller developers skip the 720.

The augmented reality stuff could be a hit with casuals if it's flashy enough. It doesn't even have to be perfect, the general public rarely does research. WOW them enough and they'll rush out and buy it.

Not convinced any of that will translate into more fun game-play, however. We'll have to see. I keep thinking about how good they made Star Wars Kinect look when it was first shown at E3.

Also, does anyone really want a Windows 8 Metro interface?

Ultimately, though, none of this means anything until we see the beast in action. All of this might be true but it gives us no real concept of how well it pulls it off. Project Natal says to be cautiously optimistic.