I don't think it counts for much, they were up against the likes of Kinectimals, Starcraft 2 and Need for Speed, no God of War 3 or Red Dead Redemption.
Kinectimals is top-notch visually, definitely. It does only one thing well - okay, two - lush vegetation and felines - but it does them head and shoulders above other console games. For all the talk about how important animation is as a next step in visual realism, you'd think a title that does animations so well would get more recognition.