Sony stressed the sorcery demo as "the advantage of buttons" type of thing, but while watching it struck me you could do it with Natal. Just put spell cycle on a left hand wave, cast on the right.
But then I remember you have to navigate. Can be done on subcontroller with Move, Not sure about Natal. You could walk in place or something, but that would be pretty lame...
I suspect the navigation is done with one of the buttons on Move (Hold down to walk, like Heavy Rain). There is no subcontroller in the Sorcery demo.
Also, because there is no reticule, the game may estimate where the user is firing based on his absolute position in the game and the Move orientation. However I am not sure.