Look, OK, I'm a huge fuckin' nerd, and I grew up moving around, reading books, and playing games instead of talking to people, so games are one of my primary metaphors for interacting with the world. This blurs that distinction. The other video (at the top of the linked source article) blurs it even more.
We're one huge step closer to VR.
Content is going to make or break this thing, period. With awesome games, it will destroy the Wii and leave the PS3 a dessiccated husk. That is, if I felt like being figurative. But with terrible games, it's going to be dead on arrival. Personally, I plan on supporting the product regardless, as support for the technology. I think this is awesome: I play games to vicariously do things I lack the time, inclination, or ability to do in real life. I can't go kill alien hordes bent on our extermination in real life. I don't want to steal cars and give in to wanton bloodlust in real life. I can't build an empire in real life and have time to do all the other things I do for fun. I like to be a sampler, a butterfly of sorts, flitting from flower to flower, flirting with all the possible things I could do with my life but not committing myself to any of them. This avoids both the pros and cons of doing that thing in real life, and considering how often I fail at the things I like to do in video games, I think this is probably a good deal for me. The more immersive the interface, the more satisfaction I get out of the experience. So, for me, this is really fucking exciting.
I seriously can't wait to see what's in store.