I read that gizmodo piece too, and it shows promise.

However, if I am to believe correctly, it would seem that Natal is going to be compatible with a whole host of games that already exist. One of the tech demos is with Burnout Paradise, which has been out for years. If Natal is designed to be compatible with everything (or even just more than nothing, really) then there is little to no danger of it fading off into gimmicky obscurity.