Wow.. must every game be a FPS, racing, or sports game? No wonder MS keeps churning out the same game over and over again. Of course it'd suck to split a screen 5 or 6 ways, but lots of games can be played with several players without split screen. Oh wait... thats right, the xbox has very few of those games compared to the other two consoles.
The ability to play with 6 friends + yourself all on a single game without having to switch controllers between each other is a great idea. Adds a lot more fun to party games and most likely means there will be a lot more games that will be simple fun games that are also targetted towards women (for those of us that have girlfriends, who don't play halo).
Sort of like fuzion frenzy, and super monkey ball. Simple easy games that women can play and provides simplistic fun for a group. Now if you just want to sit there and play FPS all day, might as well just play it on the computer.