Wow.
That pretty much sums up my impressions of the Bioshock Xbox 360 demo. Visually, the game looks like the classic Myst did, only this time these aren't static, previously rendered images, this is interactive 3D and it looks gorgeous.
The story, or at least the 20 minutes of it you get to experience in the demo, is absorbing. You've crashed, wake up floating in a sea and find your way to a massive underground city. Once there you find out that the inhabitants have gone a little crazy. You also discover the gene-altering therapy that becomes a core part of the game.
Throughout all this you get tutorials on what is going on, and the interface and controls are very straightforward considering their potential for complexity.