The only problem I have with the Kinect is the amount of space you need. It just fits in my living room and my sofa is around 11 from my TV/Kinect; I dont know how MS say it will work from 6 out.
In reality I agree completely, that does seem to be the only major flaw, as far as I can determine from what Ive seen online it just wouldnt work in my living room and leave space for furniture of any kind. I think only my attic room has the floor space required and then Id be forever banging my head on the ceiling.
Im glad to hear youre enjoying it, some of the games theyre advertising look really good fun / good ideas, provided the hardware lives up to expectations (which your experience seems to suggest it does).