I've been reading a lot about lag in this post and I can tell you from my impressions with Kinect as well as the impressions of non- gamers, lag isn't an inssue at all with Kinect. In fact in many cases the motion to jump or move side to side (like in the raft game) is actually very natural. i watched literally dozens of people who clearly had never played with a console system before stand in front of Kinect and know exactly what to do both in game and in the menu. We have to remember sometimes that what we do as hardcore gamers doesn't translate all that well to people that don't really enjoy games as a hobby.
I don't think the OP is being overly critical I just think he is looking at it from the perspective of a gamer and not that of a person that just doesn't get what we do. To them the whole idea of just interacting with something in front of them is fascinating. I do think that the $150 price point is mass market and sales so far seem to reflect that, but will have to wait and see some official numbers.