Lag has been cut down to 0.002 seconds according to 123Kinect via Microsoft at Cambridge, also the voices are about to come out in more countries... we will see just how well kinect can do when that happens imo

I have a similar feeling. I actually even expect that all next generation consoles will ship with a camera/microphone like the PS Eye. Here's why:

The Wii's success made clear that today's consoles should not only attract core gamers, but casual gamers as well. Sony and Microsoft realized that offering an alternative to the traditional "two handed controller" input scheme was the key to the Wii's success. That must have impressed the two companies so much that they launched their own motion control systems as non-mandatory add-ons in the middle of the console lifespan, despite knowing that this would severely limit the success of their motion control systems.

They are not going to do that mistake again, the PS3 and 360 successors will both launch with additional, "casual-friendly" input methods. Question is: which?

Cameras and microphones allow for various possibilities, yet they are very cheap to manufacture nowadays. That makes them very interesting for the console manufacturers, as including them by default would have hardly any effect on manufactuing costs.

Nintendo has already started building cameras and microphones into all their recent handheld devices. The NDS didn't have cameras, but the technology became so cheap that the DSi revision already has two. I'm sure they'll also include at least one into the Wii successor.

Microsoft might stick to a Kinect-like camera that includes a distance sensor in addition to a standard microphone/camera sensor. But I'm not so sure about this. Unlike a simple webcam, the TOF technology in Kinect is quite expensive - shipping it with every console might severly raise the 360 successor's price tag. On the other hand, Microsoft will of course not get rid of the controller completely. They will try to better integrate controller and camera, and I guess they might also come up with a "split controller with builtin motion sensors" solution like Wii Remote and PS Move.

Sony will probably stick to a system similar to PS Move that already includes a camera/microphone. But I see a good chance they will go for a stereoscopic 3D camera for the PS3 successor. That would be very handy for the upcoming 3D future, would increase manufacturing costs only by a small degree, and the stereoscopic data could even be used to obtain depth/distance information similar to the Kinect hardware, but at a fraction of the costs.

that update would be really neat for current owners, games we are used to playing should change along with new ones.  So from what I can tel we are getting a system update soon that will not include the new disc format.  Maybe that one is for fall...