I think if they bundle it with a PS3 and a good price tag it can take potential Wii owners who would look at it like "This may cost more but I get an HD console with more features and better valuve" and they can really highlight that with the "It Only Does Everything" marketing
I think the more important thing they should do is highlight the fact that you get a camera with it
Now it may not as advanced as Natal but what it can and can't do shouldn't hurt their marketing if they can make it look like you get a Natal like camera plus the motion controllers... I'm really interested of what this thing can do from a sales standpoint if it turns out to be a success









