If what you're saying is true, than the addition of the camera will just be a tacky "look, I've got motion sensors too!" gimmick. The controller works fine by itself, and what if you turn you head to talk to someone next to you, the camera would change direction. Not only that, you would have a extremely limited range of vision, been unable to 90 degrees either side due to you not actually looking at the screen anymore. Movement won't work unless on rails, using controller or doing something stupid like running on the spot which would be a disaster. On top of that, Natal would require a large screen for fine control. Otherwise all movements would be too big on a normal sized TV for things like aiming.
Overall, Natal seems to be Wii cash in, and you're "Mythbusting" is not only dubious but reeks of loyalist optimism. We've had camera systems before and they didn't work with "hardcore" games. Not only that, but these games with user movement would be extremely tiring. So no, it will likely not work well with hardcore games. There will always be exceptions to that, but these exceptions would also probably benefit from a actual controller control scheme.
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