Of course despite the outcry at the time, that actually turned out rather well.
For those of you unfamiliar with the character, Beast is a mutant member of the X-Men (duh) who is genius-level intelligent with a HUGE vocabulary and happens to look like, well, a beast. In the comic he's covered in hair, super agile and is sort of ape-like in appearance. Really he's more of a short, squat character but Bryan Singer got away from that with the Wolverine character and casting of Hugh Jackman and it didn't seem to hurt the role much IMO.
Here's a quote from Avi Arad according to Variety:
"This is a big role in the new movie, and when we met with him, you can see that Kelsey has that you'd-better-have-a-dictionary-handy intelligence..."
Personally I think that if he can bring his "Frasier" personality to the role (minus the neurotic part, of course) he'll be awesome.