Of course it's fake to some extent. For example the part where a skateboard appears in the game after being 'scanned' by the device. Obviously it was put in the game/demo and the camera just recognized it.
As for that Molyneux demo, mad impressive if it's not, but most likely a bit fake as well.
I suppose this should already work, when people have
specific Markers (like a hat, Marker-balls to attack to your hands)
Its really hard for the computer to track the actual
person and its movement without reference points.
Yeah, recognizing a player is one thing, reacting to movement another, but recognizing that a player lifts his right hand and more detailed stuff like that... mmmm, maybe not yet possible. Then again, MS will do whatever it takes to come with something extraordinary a lá the Wii-mote soon.
