Id love to see how Milo reacts if someone argues at him, abuses him or talks rude to him

I think one of the main differences is that with Milo, you seem to be going into his world, wheras with Eyepet, the character seems to be coming to yours.
For example you touch Milo's water, but the pet plays with your fruit

oh that's easy.

Milo'll report them to Microsoft and ban them from XBL

If people can get attached to a virtual dog pet, imagine what can happen with some lonely people and this Milo virtual boy pet?
Can you say "virtual insanity"? Stufs are getting scary.

Haha. I can just imagine:

Gamer: 'Hey Milo, how's it hanging?'

Milo: No response, dosen't understand the terminology

Gamer: 'Oh come on, answer me you little ****'

....................Gamer gets banned.

that was a great song.

and a good point

Like you said communication (being able to recognize you and your emotions). Pretty impressive stuff for only a DEMO.

Lol

What's more creepy is the attitude/perspective of looking at a human boy like an pet... but then again, we look at war as a plaything in video games so, I guess I'll be a hypocrite to say that.

I think the Milo program has to be looked at in the bigger picture. At the moment it holds no real interest other than as a demo of interactive software (although how interactive is still up for debate). However, its real promise lies in incorporating the software into full games. Can you imagine playing an RPG where you don't have to select what you want to say to on screen characters, instead you actually just say it and the character is not only able to 'understand' but may respond in a way that reflects the emotion of the conversation. It would bring game play to a whole new level of immersion. Unfortunately, I still think that the technology is far, far away from being at that stage but never the less its exciting to think about!