This isn't XBOX version...
it's been tweaked work at smaller distances. Your FAIL is a FAIL : D
As a 3D CAD user, this might have potential for 1, scanning 3D objects, and 2, maybe developing a 3D gesture-based 'digital clay' interface for CAD software - using my hands, not my limbs. Anything that allows you to swap away from one input device to another can only reduce (the chance of) RSI.
Hell, it would stimulate the 'little grey cells' if the designer were able to stand up and pace about whilst designing. ( see recent studies that suggest foreign languages are learnt quicker if the student is moving around )
We've already seen software that allows Solidworks to be manipulated with an XBOX 360 controller.
However, Kinect would be more flexible in its current stand-alone form.
I'm excited to see what software comes along.