No the point that was being conveyed was that thank to Natal we have the opportunity to truely meet a character and interact with it like we've never done before. We haven't made a piece of AI that's going to create a nuclear weapon and resolve world piece. If we had - we would use that for something quite different than a videogame.
The demo of Milo was real, I worked my ass off presenting it to people behind closed doors (some VIPs even) and Milo didn't call me Claire, but Sam. When we trained the software to regocnize other people (like journalists), he would call them by their name and comment on the colour of their clothes, no matter what the colour was.
Finally, the voice emphathy doesn't work "on the fly", Milo needs to be familiar with it. Plus it's hard for people when first introduced to him, to interact with the voice. That's why Claire did it in the video and I did behind closed doors.