blu ray isn0t only for movies.

they are used for storage.

that's true.

Natal looks like a USB device to use with existing Xbox. Not new Xbox at all.

Im pritty sure come 2010 Natal will be bundled with every 360 and they will do a huge advertisment about it and how they are relaunching the 360 and how its like a whole new system.
By doing this ms will probably get already 360 owners to buy a nother 360(natal will also be sold as a stand alone) as well as new owners.
The price wont change at all from what it is now. Fact is ms needs to stay cheaper than the ps3 and wii we know this and so do they.
Apart from games that will run on Natal nothing will change with the 360 meaning older models will still work fine. I do see some options maybe for people with Natal like we saw on the Vid e.g.
Voice actavasion
Motion controll for the dash board things like that.

If Microsoft really wants Natal to be a huge hit, it must NOT be bundled with an XBOX 360 but with a redesigned XBOX (yes, the original xbox) made to look like a "white" product. The development costs for a more precise motion controls will increase much more with HD graphics included and that will be a problem

lol what do you mean 'the original xbox'? The Xbox, Microsofts first console, released in 2001?

We first have to see what this new console has to offer before making any criticism.