DDR without a mat and hand movements

Nope.. sure wasn't..

I look like a fool when I play my Wii, I look like a fool when I use to play that totum arcade game, and I look like a fool when I play Blazing Angels 2 on PS3..

And I will look like a fool during the rest of this gen from the looks of it.. (sadly even if i'm not playing games)

The problem with Natal is all the solutions you just listed don't sound more intuitive or less complicated than a simple controller or waggle.
An improved control scheme should result in easier interactivity and less peripherals, not the other way around.

I will still hold out on the tech until its software is more fully developed, it'll be interesting to see what they come up with.