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SvennoJ said:

I guess most of these so called scary games will end with "Ok, I give up, here's your money back and please stop staring at me with that total disappointment in your eyes"

Anything that can measure frustration and adjust the game before the controller hits the kinect square in the face is a plus though.

Nice food for thought in the last paragraph:
Systems that could detect when you are mentally taxed could also take advantage – pushing in-game transactions such as buying an extra life or better weapons, for example. "Willpower is like a muscle that can be exhausted by any mental activity," says Madigan. "When it's depleted we're more likely to do dumb stuff like make impulse purchases."

I'm sure marketeers are drooling at all the possibilities. Not just in games, looking a bit hungry, pop up the pizza app. Smacking your lips, Pepsi commercial. Detect disgusted look, adjust, pop up Coke commercial. Pleased look found, save to profile.

Straight to the negatives, will this site ever surprise me again?

Companies have done targeted advertising for ages already. It's nothing new.