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I think it will be good in the long-run for Kinect to be included in every box. Since developers will know that every Xbox owner has one, they will be much more likely to make good use of it, especially since it's really accurate now.

Am I expecting core, AAA, retail-sized games to be revolutionized by Kinect? Heck no; the traditional controller will still be the go-to control scheme, especially for multiplatform games that aren't aimed at casual audiences. But a smaller developer (or a small game made by any developer, for that matter) might be able to create some unique experiences that make good use of the updated Kinect.

Also, voice/motion control of the UI is freaking cool. It's awesome, and I can't wait.