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I actually had the same problem as the OP.  My couch is about 11 feet away from my Kinect and I have to lean forward a little bit for my hands to be visible.  I would rather have that issue than not enough space.  Setup is painless.  Not sure if my Kinect ID stuff is working for me yet.  Maybe I did not have enough light when I set it up.  I also used the smiley card to calibrate as well.  So far I haven't had any issues with Kinect going funky on me or anything. 

I also wish I had thicker window shades :)