**My concentration ran out part-way through that quote in the OP**
In the vein of one or two other people; this looks like it might be a sort of step, to make things easier for smaller developers who are more likely to come up with new things, instead of just churning out the same rubbish over and over agian, only ever improving the graphics (and maybe throwing in a gimmick or two).
However, the fact that it comes from Microsoft and is highly unlikely to support anything other than Microsoft products is a bit of a downside. I definately
would prefer something that can easily create games for both windows and Unix like systems. Perhaps Blender/CrystalBlend will fill that role.
To those of you who are saying that all one needs to create a game is GCC, Blender, The Gimp, etc.; you can cut that down even further. A GNU/Linux distro which is stripped down almost to only the kernel plus GCC, maybe a text editor as well, is all you need. In fact, that's far more than one needs.
Why browse the web in firefox in Enlightenment when you could be doing it in Lynx from the CLI?
P.S. I'm typing this from a Firefox tab in gnome on Fedora 5. Though I probably could do it in Lynx. Maybe I'll do a edit in a little while.
EDIT: this is being done from lynx.
Linky to image. (I even uploaded that using lynx. A thought just popped into my head: why am I doing this?

).