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fps with good graphics using the wii controller would excite me more than what they're trying to do.
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theres the first problem - the gamecube1.5..erm I mean Wii is never going to look that good - it just doesnt have the hardware for it. Its maxed out at the moment.
Also this is the usual flurry of overreaction to a press conference, what will hopefully come out of it will be game that use Both a controller and the motion sensor
e.g a FPS using the controller but you throw grenades with your arm rather than a button - thats a nice thought, wave you arms to direct your men SAS style maybe, hot wire cars with your hands . These are the things this will bring to the more advance games + a load of simple football/tennis etc etc stuff as on the wii.
I dont want to get over excited by this there is a reason why games are controlled the way they are and its not due for a update, its a slow evolution.
NOTE - MS will get this up and running and you have the reason in your post - theres £££ in family gaming and this will make it happen on the other consoles - a lot of dad's just need an excuse to get either a 360 or BluRay player under the guise of "its for the kids" or have one already and have kids. They have shown it, journalists have played on it - it will come out. Might be crap (never stopped the wii making megabucks) of course but I think it looks hopeful - not revolutionary, but interesting.