One of the thing I don't like about console racing games is they are clearly design for a controller while steering wheel support is often an after thought. Kinect as a steering wheel is a huge step backward since there is no forcefeed back, no resistance to pedals ... what am I thinking no pedals at all and I thought DFGT pedals sucked. I have a feeling the next Forza will be design around Kinect with wheel support again as an after thought especially FFB.
Also moving around to room to see your car is lame. It's like wow "I can get up and change channel on my HDTV instead of using the remote". Head tracking on the pc is better than Kinect since i can look around the car with just little head movement vs moving around the room.