Well, I agree that it is not a big gaming event, but they chose to end on the note of Natal and presser's usually save the best for last. So to Microsoft, that was what they wanted us to remember. If that was the case they should have at least had a new live demo.
THAT was a depressing keynote from Microsoft. A lot of touting and not a whole lot of big announcements. I mean, showing the VGA trailer for Halo: Reach and then what the live bloggers refer to as a Steorn-like NATAL video...
Let the ending be weaker - I am looking forward to the character development most. Seeing what has happened to the characters from the first one.