I love new hardware reveals, and this is a pretty great showing. If MS can bring the games (and I mean games that I like, not doubting their ability to bring out crowd-pleasers like Gears, Forza, etc.) I'll be there next gen.
I do wish they'd put paddles or equivalent buttons on their standard controller though. Saving that stuff for the Elite controllers seems like a bad move, IMO, especially since it would cost basically nothing to include.
If Sony has a box that's more or less on-par next gen but actually makes an effort to innovate with their controller (as rumors suggest they are), then that will be a pretty major factor in which console I go for first.
EDIT: On reflection, that sounded more negative than positive, when all I felt while watching the video was hype. I say again, great showing. Next gen is looking good so far. I hope Sony keeps the combo going.