I was totally there and listening to the talk, but somehow I missed this: Harmonix's Chris Foster mentioned that while the technology used in Phase to generate gameplay from the music on the player's iPod currently won't work for Rock Band (because the Phase tech can only generate a single gameplay track for the song, and not one per instrument), Harmonix is looking into the possibility of procedural generation in the game.
There was no information on when, and no details (probably because the details don't exist) but Foster said that feature would be implemented in a Rock Band sequel if they can get it to work. So, uh, Rock Band sequel confirmed?
GDC08: Imported Rock Band music possible in sequels
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