That does look pretty impressive, regardless of the lag, assuming that it was all random and unplanned movements. However, despite being useful for custom animations and motion capture outside of games, it's still not practical for use in games until they can reduce that lag some more. Some kind of fighting game using that system would be awesome - it looks much more capable of handling something like a swordfight (or lightsaber duel) than the Wii is - but imagine trying to handle a fight online. Internet lag is bad enough to cost people kills in fast-paced games, it would be unplayable with any more processing lag at each end than we have already...