Much of what we have seen in the past is still there --
This kind of projection can be done with regular projectors, but to ensure that everything is in focus, (I'm pretty sure) would cost a lot more computing horsepower than simply having an always in focus laser projector.
This does look like a LOT more fun than a lot of other things they've come up with.
For regular movies and shows --- could be a lot more immersive by hinting at surroundings... (A forest, city, farm or bar scene could be changed so that you feel like you're actually THERE.)
Xbox Two Hardware
Microsoft has already acquired Illumiroom, a proof-of-concept projector system that can augment the area surrounding the TV to reflect what's being seen on the console. This hardware akin to the Surround Sound only in visual form may befeatured in the Xbox Two according to Tech Radar.
However, Microsoft claimed that the hardware is too costly for mass production in Xbox One. To have it in Xbox 2 may push the price higher, an impractical move for Microsoft right now especially with the delayed arrival of the console.