Will they be relaesing 3rd person shooter/rpg games where your character makes whatever movements you do? You could even walk in place to make him move. Actually pick things up etc.
Unfortunately, kinect isn't sensitive enough to detect grasping. You'll notice that kinect navigation, hitting a button relies of hovering your arm in place as a bar fills (there are variations), but there's no 'poke' or 'detect fist' there.
I think that would be amazing.