I played the level they give you and it was rather fun. The graphics are a throwback, and it does remind me of the more simplified Star Wars Kinect. The graphics are more like between the Xbox and the 360. I guess Kinect processing takes a chunk of power. It looks nice, but not as nice as Fable II/III.
Still, I had a quite a good time. It wonder how much it will be like Harry Potter Kinect. For tracking I found it good, and liked that you can throw different spell with your voice, and different arms and styles of movements.
Pushing buttons is fine for some games, but others it's rather fun to have movement and immersive gameplay. I am not apposed to a 'holodeck' and see this as the next baby step.