Lost in all the hubbub about wearing raingear that lit up and the snickering at the bad dialogue is one interesting fact I've noticed.
Most of the podcasts and reports and hands-on things I've read (Talk Radar, OXM, 1up, kotaku, G4) have been saying similar things about the Kinect stuff. In person, it looks good, and while it's not "core gaming", the dance game and the like are actually kind of fun. And they think kids will like it. yes they are ripping some of the presentation and the things beyond the games, but the actual viability of the product has been pretty positive.
While that conference didn't have the wow factor of some, it'll be quite interesting to see what happens in the long run. If MS can sell this to the soccer moms and the grade schools/junior highs of America, this may be a brilliant scheme yet.
Or the world might end. One or the other. I'm still deciding.