Why should that be surprising? The last two or three E3s were also complete and utter disappointments. (Although from everybody, not just Microsoft.)
I'm not really surprised. Until they release a new 360 or some other type of device, Microsoft will always be at a disadvantage. I still don't think the majority of the gaming community cares about Kinect in any sort of way. The smart glass thing was sort of interesting, but keeping your smart phone and tablet next to you while gaming and then using it as a controller sounds tedious. It's clearly an attempt to delve into Wii U controller territory, but fails since we still don't know everything the Wii U controller can do. We should tomorrow, which is why Nintendo probably has the most excitement going into their conf. New system, new controller, possible new awesome Nintendo games, and so on. I'm not sure what Sony can offer besides games and more PS3-PSVita connectivity, which is still interesting. A price drop on the Vita would be exciting. Since Microsoft showed me nothing, my big hope for Sony is the same hope I have every year, which of course is a ZOE3 trailer of awesomicity.
Also, while watching G4 for just a bit, I really forgot how much that station hates Nintendo. Or at least Morgan Webb.