Microsoft's upcoming "Avatar Kinect" was pitched as a glorified chatroom. It didn't sound that exciting. This real-time demonstration, though, at least makes it look remotely interesting.
Sure, it's still a glorified chatroom, but there's some neat technology on display, not the least of which is the impressive almost-real-time lip-syncing your avatar is capable of when you're speaking into the mic.
The "chatroom" thing also looks like a bit of fun, or at least it does now. Once YouTube is drowning in a sea of "welcome to another NSFW episode of PS3 IS FOR TEH KIDZ" videos masquerading as "talk shows", we're liable to change our opinion. Actually, sitting through that Gettysburg address, we're liable to change it a lot sooner than that.
Avatar Kinect is due this (northern) spring, and will be free for all Xbox Live Gold subscribers.