Holy crap. Tell me this isn't going to become the biggest thing ever.
This reminds me of a PC game from Lionhead Studios called, "The Movies." The idea was that you would manage your own movie studio and make your own movies, using templates for settings, backgrounds, costumes, and actors. I absolutely loved the idea, but it was far too complicated to really work, far too techy and geeky.
Do-it-yourself animation really would be the greatest thing to hit the internet EVER. It just needs to be easy enough for anyone to start creating. I don't know yet if Xtranormal will be the breakthrough, or if it's only the next step forward. All I know is that I want to goof around and make my own Lego People cartoons.
This is what the computer revolution does. It shatters barriers and democratizes everything. I say bring it on.