It's called firmware upgrades, like any console or handheld has gotten before it. Both MS heads already said it is very possible to get both cameras to recognize up to 4x more joints and plot points /w both cameras running at 640x480 @ 60FPS by utilizing more of the untapped power, but I wouldn't expect an OBVIOUS biased Nintendo fanboy that wants to talk about symantics when it is obvious first gen hardware.
I can already tell you are going to be an annoying troll which is why I signed up just to show you how clueless you are. Also, with this tech demo it is possible with just the Kinect and to use TWO hands to forge a bond between the objects something not possible without 2 wii-motes or move controllers. Which would mean it's not applicable as a real world application for a future game as the wii does not use two remotes simultaneously throwing your theory out the window.
As for anyone saying that Dance Central uses simulated images to match the IR camera, incorrect because it is constant motion that being projected in a timed sequence. Meaning that if the Kinect had the latency issues that people are presenting it would never be able to correlate correctly with any of the move at the exact time pattern due to the fraction it is off. This is not a game where you are holding a pose or matching a shape to thecamera like the inferior Eyetoy presented.
This again is only the first gen of the hardware and firmware upgrade can be implemented very easier to increase the power making it possible for finger movements and subtle movements to be detected further away opening all genres.
