Absolutely serious. My xbox is more often used for netflix, zune, last.fm and espn than for games and the search in those apps is used on a daily basis. In fact, same is true for a very large number of xboxes. 40% of xbox usage comes from non gaming utilization. That's a pretty big number for a gaming console. Obviously, catering to that market will return huge profits.
As of Kinect, I noticed that the big screen had a very considerable delay across all games. I've played with Fun Labs and it wasn't that laggy on my console. Frankly, it seems that the AV setup sucked. So far, I haven't had any kinect experiences ruined by lag in my personal experience. As of voice recognition, Kinect is needed because most of the time it's sitting 6+ feet from the user in a room(living room) that is usually the loudest in a household. Utilizing 4 mics for noise cancelation is a must.
Oh and MS doesn't give a rat's ass about Sweden. Live with it. Most of their content is for US/UK.
Again, realize that NS was presenting for their investors, who don't give a **** about games.