Seems like something they should sell on PC, i dont personally see the market for it on consoles.
It is more like machinima tool than a game, in contrary to something like LBP.
MM is very talented though, You cant question that. They were great purchase for Sony.
The trailer waa obviously just to show off the creation tools and graphics. I have no doubt the full game will have a fleshed out single player campaign like LBP.
It looks really cool, but it's not something I could see myself playing. It seems to focus too much on the creative aspect and less on actually playing something that takes the form of a game. I loved LBP and Tearaway, but this seems eh.