What else out there is this cheap, official, and not going to break after system updates?
Yeah ok its not as simple as XNA and I am not sure about it working on consoles (maybe PSP?) but you asked infact you had the guy right there who started it or at least contributed a major part to it, the one and only Shawn Hargreaves!
Regarding the video, up until now I also laughed at XNA for game development but after seeing that video of the first person shooter and how smoothly it ran I will definately have a play at some point!
Loved the video btw, informative and funny. I would have to agree with DanielMD though that the idea of this never being done before etc is over the top but otherwise good stuff.