I got my nieces the Kinect for xmas and got to play around with it a little to decide if I need one for myself. (I did the same when the Wii came out.)
My review:
Dashboard - In short they need a few more updates. When the system detects a Kinect command (verbal or physical) it directs you to the Kinect Dashboard. The Kinect Dashboard is really lacking some key features. Such as the ability to check non-Kinect messages or turn the 360 off.
Gaming - It is pretty much like the Wii but with way better graphics. We played Adventure, Sports, Kinectimals, & Dance Central. Only Adventure and Kinectimals could successfully do a face detection. This may change as it appears that the detection software has a learning process. 95% of the time games ran smooth with no hicups. Will be interesting to see how the hardcore games implement this tool.
Overall - LOTS of FUN for KIDS!!!!! With a couple good updates to improve the Dashboard features it will become a tool that hardcore gamers would actually like to have. I'll give it a few years to see where it goes before picking one up for myself.
...and whats up with Netflix not putting out an update to use the Kinect?