Well, Sony's demos looked really really impressive in the video, and I think that it's a really strong second place, but the Wii motion plus has the same 1:1 tracking and uses a different technology that I'm more of a fan of. The fact that the PS3 Motion controller uses a camera for motion capture is a bit of a detractor as you need to stay in visual line of sight for the camera to track. The Wii remote uses infared and is more based on accelerometers inside the remote itself, though relative position is tracked compared to the sensor bar similar to how a camera would work (but since it's not visible light it's not as susceptible to interference like someone walking in front of you, etc.
So I'm still favoring Nintendo.
Microsoft's Natal project is a joke. The video demo is not actual gameplay and such. Also I want to be holding onto something, and having buttons is important. Natal project doesn't allow for that.
Total joke.