Ok, let me preface this by saying that I realize full well how impressive the technology is in this video. I also have to say I think it's an absolutely horrible thing.
Do we not have enough problems with people wiring into a game console and ignoring the outside world? do we really need something like this? Don't get me wrong, I'm a pretty avid gamer on both XBox and PC platforms. I love video games and when I'm home with some time to kill, I am perfectly content to park myself on the couch and play some XBox. I don't believe video games "are evil" or anything like that, I think they actually have some positive qualities, but this is just too far. This is too encouraging to people (both kids and adults) to further block out the outside world. Why make actual friends when you can just make one that has any set of qualities you want? Why go out and experience anything new when you can just program it into the XBox and never leave your living room?
I know how addictive video games can be. I myself occasionally find myself looking at the clock and saying "holy crap, I have been playing this for 4 hours now?" I just see far too many negatives to something like this despite how impressive the technology is. Please tell me someone else finds this a little creepy?
Video games are cool, but this a step too far IMO.