Unveiled right at the beginning of Nintendo's E3 conference, which is still ongoing, The Legend of Zelda: Skyward Sword, is presented as a mix between The Wind Waker's lush Cel-shaded style, and Twilight Princess's nitty gritty realism, retaining the Adult portrayal of the latter.
The game will indeed make full use of the MotionPlus peripheral, and will use it to great effect with Link's sword, and arsenal of items. An on-stage demonstration from Zelda creator Shigeru Miyamoto himself showcased the felxibility and dexterity of the control, despite reported interference from wireless signals and lighting in the audience.
The game is reported to be released next year, instead of the rumoured date by the end of this year, and will be playable on the E3 showfloor.
Be sure to stick with C3 for screens and media updates as they are released.
Update 1: Debut trailer and gameplay montage from Skyward Sword: