YES! Is the quick answer, it is very cool technology, one step closer to the tennis trainer in Total Recall... the future is here NOW! or at least in November!
But...
I do have a few issues with what I have seen so far, mostly because of the driving games they have shown using the Kinect system. I just don't get it. Why would anybody want to play a racing game by holding their arms up at 10 and 2? I get playing racing games with steering wheel controllers as it brings an element of realism. I get using Kinect for full body games like dancing, sports, fitness, fighting and other innovative original titles that take advantage of the unique control method that Kinect offers. But, I don't get playing driving games with Kinect, or why MS chose to make Joy Ride a Kinect game when they said it was going to be free for everybody and we should have been playing it for half a year already! (although the free bit was only ever going to be a bare bones version with all the shiny extras being paid for on the marketplace.)