Disclaimer: I work for Microsoft and have to admit I'm a big Xbox 360 fanboy so I will not be fully objective on this topic.
Ever since Nintendo has annouced their new controller, I've had very big doubts about betting the console on such a concept. The controller in itself seems to be beautifully executed and more precise than any other previous attempt at a motion-sensing controller, but I fully agree with Peter Molyneux that for most players, the most confortable position to play is lying on the couch with the controller resting on the beer belly. Only the thumbs move, and they do so very little, which enables us to play for extended periods of time (not that we *should* play that long, but we do, and that eventually makes us buy more games). And I call that motion sensing too: the pad is very efficiently detecting very small movements of my thumbs...