We saw Peter Molyneux showing off the Kinect title Milo & Kate at E3 2009, but we haven't heard much on the title since. He took Lionhead's newest demo for the title to the TED Global technology event in Oxford to show it off. It was there that he said that this new demo is "ten dimes more amazing" than the one we saw last year.
The demo used an on-stage assistant, which had virtual boy Milo squashing a snail after carefully considering the moral choice. He also taught Milo to skim stones and then helped him clean his room. This whole process was to cheer Milo up as he had just moved to a new home.
I'm sure we'll see some of this demo soon.
I'm hoping for a Milo that develops Tourette syndrome, plays drums with his tongue sticking out, and is a young connoisseur of Japanese porn. We could be like brothers.