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muscle sensors the next big thing in game control 645235
According to an article from Tech Radar Microsoft thinks muscle controls sensors are the way of the future. The sensors allows you to interact with objects like your car, games, and other electrical devices without a physical object.
A game currently being made to use this technology is the musical game Guitar Hero. They have created a way to control the game without the guitar at all. Now that may sound like Natal because it doesn't use a controller but the difference is Natal scans the room and makes a 3D image of the you that allows you to play the game. The muscle sensors, as you've already guessed, allow you to control it by using the electrical signals from your body to your hands, feet, etc. without any controller or camera needed.
Here's a video demonstrating GH in use and mention of other potential uses for it. Courtesy of Tech Radar and Procrastineering. The project was developed by Scott Saponas.