I'm looking forward to see its potential exploited in the racing sim genre ... but most of what I've read from people who are deep into sim racing is that it ain't ready for prime time. Low res, narrow field of view, and your view of the real word is gone - a problem for those guys with a mass array of programmable buttons and switches on the simulated dashboard of their simulated cockpit.
Be fucking killer for Mario Kart though.
I had a thought about this: The consumer version is going to have stereo cameras on the front of it. Couldn't you use a sort of augmented reality greenscreen that would show you real-time footage of your own body and peripherals, but replace everything else with the game world?