Seems a bit rude to be making pronouncements about what can and can't be done using what appears to be a last minute hackish addition to a game as your proof.
Developers have had the final version of the hardware and software for months, not years, and the stuff they've come up with is already impressive.
Compare the launch titles for the 360 with the titles today to see how familiarity and time makes a difference. (I tried playing Oblivion again recently.. facial animation has come a _long_ way...)
I don't think it's invalid to make the
observation (i didn't see it as a pronouncement) based off many different videos, as well as Microsoft's own E3 conference, that the techonology behind Kinect is very immature and IMHO isn't really ready for retail. The product could really have done with a good six to twleve months more in development to iron out all the issues. It was microsoft that decided against that and wanted to rush the thing to market (in order to try and counter Sony with the MOVE imho).
I don't think we as consumers, seeing the blatant evidence of Kinect's inadequacies, should decide not to talk about them because of how they may or may not affect MS' ability to sell an immature product. This says nothing about the developers who have spent their time and money making software for the device, but more about MS' own executive decisions in the process of Kinect's product development.
So far I'm inclined to agree with bkilian, that Kinect presents developers with far too many limitations in the development of software for the device. The whole "hands-free" gaming premise is a nice idea on paper, and probably also appealing in the minds of the casual gaming audience and reachable non-gamer consumerbase. However the current implimentation with Kinect has shown itself to be prevailingly limiting, allowing for far too narrow a scope for game development.
As it stands the only genres that seem to work are dance/fitness games, party/mini-games etc... Forcing developers to effectively "make-up" new game genres outside those and the traditional (and ostensibly lucrative) game genres (which would require far to contrived a control scheme to work, based on technology limitations) is never a great platform model.
Developers should be given the freedom to do what they've done and do well (i.e. traditional games). They should also be equiped by the technology to innovate and go further, doing things there were unable to do before with traditional controls, but reliably and with enough precision that the control input technology doesn't limit the game designer, rather gives him tonnes more options.
Right now i see Kinect more like the guitars used for Rock Band and Guitar Hero games, only with a slightly less narrow scope than those. Still to me it is a narrow scoped product only really useful in a very limited number of applications, especially for the price their asking for it.