Hi KinectFAAST, Great Work!
I think I lean the opposite way from most of the posters here... I love the idea of getting out of my chair to play games. In fact, I'd prefer options that would allow me to get a full workout from gaming. Actual running in place to move forward: my character runs full out if I am doing a comfortable jog, sprints when I kick it up a notch and there is no in-game stamina, just my own. Full extension spell motions to stretch and work the arms, etc. With a job and family, my free time is limited and being able to get a workout and play Skyrim (or games like it) at the same time would be awesome. Being able to switch to a less strenuous set of motions after I'm tired would be necessary though

I'm a marathon runner, but I'd rather not do that every night until midnight

But even with my great enthusiasm and optimism, I don't think the industry's experience with the NUI (Natural User Interface) tech is there yet, and by industry I mean both developers and gamers. I pre-ordered a kinect (and bought an XBox360 into the deal, since I'd been a PC only gamer until then) and they both mostly just gather dust. No Kinect games have grabbed me, and though I play Dance Central with my wife sometimes, it doesn't have the same pull that Skyrim does. I keep reading about all the new games coming out, with high hopes for the future.
Using FAAST is limiting as well. A few months after hacks started appearing, I moved my Kinect to my PC and tried it with WoW a bit. But most of the potential of NUI is lost when you convert motions back to keys to control key-controlled games. If turning my shoulders turns my character, then I want a little turn to turn slowly, and a big turn to turn quickly. I don't want to turn a little and get nothing until I pass some threshold and boom my character turns at a pre-defined rate. This just can't be done with FAAST, but requires built in support for kinect.
But
your video and work is quite impressive, and I'll probably try it out if you have a link to some instructions for setting it all up, as requested by a previous poster?
And add my name to the list of people who might to see a video of any improvements you make once the creation kit is out and mods allow greater hotkeying, and therefore greater use of voice and motion commands.
And for people who read all of that,
let me share my vision of The Elder Scrolls VI: Hammerfell: Of course, integrated smooth motion controls and HUD-menu, which may be possible with the PC-version of Kinect which is coming.
Particle control of magic: By this I mean that you don't just do a rote motion to cast a pre-defined fireball, but rather through 'magic' words and motions you conjure a ball of flame hovering in front of you. You quickly shape this ball in different ways, maybe spending a little more time on it to get more power and enlarge it, then hurl it towards your enemy. You're not so much converting motion to cast a spell, but actually controlling the particle effects in natural ways, which translate into damage and effects.
Blacksmithing: You swing a hammer to shape your blade. Hit it on the flat side to widen the blade (once you've heated it by thrusting it into the fire and heating it to a certain color/heat). Hit at an angle to narrow the blade, or curve it. Hold a (pretend) chisel in your off hand to put a groove down it's center. You would end up with a completely unique blade. Maybe certain shapes/characteristics would affect the strength/durability and damage. You would have to develop actual player skill (no character skill at all, except to perhaps to unlock high level materials) to get a nice shape rather than some lopsided monstrosity (which would also be fun).
Combat would include knee-ing and elbow-ing on follow-throughs for extra damage, stomps and shouts to activate abilities. Enchanting would involve making a pulling motion to pull the soul out of the soulgem, shaping it to determine the effect, and then thrusting it into the item. Alchemy would involve stirring. Lockpicking would involve turning your wrist, with maybe force-feedback gloves to detect resistance.
Do all you kinect nay-sayers not think that sounds awesome? I just don't know how people can NOT see and get excited about at the possibilities! And these ideas don't even include the head-tracking-3D ideas, or the potential with 4 big screens surrounding you, and multiple kinects to see you from all sides, and a game designed to use them.
But your work, KinectFaast, brings us all closer to this dream game. And I look forward to seeing what you can do with a Creation Toolkit!
Cheers, Eiger