Jeff mentioned an interactive game they let him play with it where stuff came out of the walls and he was ducking and moving around to shoot the stuff, which he said was fun. That demo was interactive.
I'd have to rewatch the video. I only recall Brad saying the hand thing with the waypoint, which he said made sense since waypoints go through stuff in Halo as well; so i'd have to hear another instance of that to know if it's a universal thing or was just for that one Halo demonstration on purpose. I feel like Jeff and Brad are skeptical enough (they voice skepticism during the conference) to where they'd have tried to break it and the illusion when they got the demo. The fact that both and Dan were very impressed makes me believe it a bit, I have no reason to assume MS is using all smoke and mirrors until there's proof.
It isn't all smoke and mirrors, they're just greatly exaggerating what the device can do and how it performs. I don't see how they've earned the benefit of the doubt here when the stage demo is just demonstrably not how the hololens works. It can still be impressive while not being capable of anything near like what they are setting people up to believe it can do.