Microsoft have said they wont rule out games which also use the controler and games which use new controlers such as a nunchuck style device you can easily hold to move around and the other movements with your body.
Infact steel battalion is already confirmed for later this year release using a series of their controller systems (as all steel battalion games have) and the kinect letting people look around and use controllers like they would in a real cockpit.
I also have a kinect (brought it for £120 in amazon sales, same deal around £160 in game and gamestation now) and ive brought a number of games including kinect sports (so much better then the wii, try out vollyball which you do actually spike the ball by jumping and hitting down and running around the court rather then standing still waving your arm.
Your shape (fitness game) is pretty good too, burned around 3,000 cals on it in the last week doing personal trainer workouts and cardio boxing (they will have you sweating!)
Oh and yesterday I purchased dance central made by the makers of rock band so they know how to make a rythem based game, its very very accurate and required you to get the moves perfect, im less then 6foot away from the screen and its pretty much fine and take 1-2foot back for easily enough at 2players on kinect sports. I highly recommend them to anyone considering them!
Oh and the drivers+key mapping software is fun, had a blast of minecraft using it having to swing my arm to use the pickaxe, they will soon be releasing the mouse binding to movements too.