Actually now that I think about it, the commercial kind of gives the impression that "Earth receiving her king" is it receiving the XBOX 360... the "king" of HD consoles. That kind of commercial might not do so well in a largely religious country like the USA. Might come across as blasphemy to a lot of Christian groups?

Christmas at heart in the US??? yeah right... Commerce at heart is what it is XD XD

Japan do Christmas but not at western scale, they do the songs, the decorations, the presents, etc. they're as superficial as us, the difference is that they don't pretend doing the holiday at heart like us...

Now, Microsoft did a good Christmas commercial but Japan won't buy it as much as western regions (of course for the West they have to change the JRPGS for Gears, Fable, etc.)...

I think the commercial made sense for japan. In Japan Christmas is a lovers/couples holiday more than anything else. Most couples go out to eat "Christmas Dinner" which you need to book the restaurant of your choice in advance. Then they eat "Christmas Cake" to celebrate the birthday.
So showing couples kissing in the ad is perfect for the Japanese sense of the holiday.