Just downloaded the Ace Combat 6 demo from Xbox Live Marketplace. Wow. This is one of the most impressive games I've seen for the 360. This game looks real and it sounds real. Not only that but the frame rate didn't appear to drop at all.

The demo mission is pretty much a giant air battle and you get an F-16C to take on your foes, which is a step up from the F-4 that the other games start you off on (although this could be a level from later on in the game).
Surprisingly the secondary weapon had quite a large capacity (around 40 missiles) and previous ACs had around a 6-16 capacity so there is no step away from its arcade origins. Even on the normal difficulty though most enemies only took 1-2 missiles to down so maybe the damage model is slightly more realistic this time around.
There are some great new features. For example when you blow up a target debris flies out everywhere and you can hear it cut through the air if you fly close enough.
I can't wait to play the full game!