Doesn't the PS3's Eye already use some form of body control in those interactive art/tech demo things from last year or more?

I don't onw any so I don't know, just asking? Because I seam to remember something like that.

See your avatar.

Project Natal is more than a camera...voice recognition, facial recognition... etc...

Yes, it's software. But that's what I'm saying.
Wasn't there something like this already, albeit much more restricted. And if yes, where's the big ... whatever?

yes it does. sony just havent used it properly... unfortunately

I believe the only hardware difference is that the 360 camera can tell the difference between a small object that is close to it, and an idetical but bigger object that is further away. the PSeye can't. (and a microphone obviously)

Well they didn't invent the wheel but it looks certainly more advanced than Eyetoy. Wait and see.

the PS Eye, does have a Mic and can track faces , so it wont be a big of a deal if they released the software for it.

exacly. Sony just aren't because there simply aren't that many people who has one.. unfortunately. Should ship it with each ps4.

Natal detects objects in translates them to a usable 3D space using its sensors.

The EyeToy detects motion using motion detecting algorithms on 2D images. As in, if these pixels change color, something has just moved.