I kinda disagree with all of you so far. Not about Kinect, but about the dance game specifically. For me games like DDR with the mat are more fun than actual dancing. I also prefer Music games like Gitaroo Man to Guitar Hero/Rock Band. The closer games try to get to reality, the more the lose their appeal to me. Menu navigation and video control is also worthless to me. I have a 360 remote control for that.
The only games that have really caught my eye are Child of Eden--It looks absolutely wonderful, not because of the optional Kinect control, but the overall design-- and Dance Masters--It's got Nignt of Fire, so I'm sold, plus it's unrealistic enough that I can actually enjoy it. Those are currently the only 2 reasons to get Kinect at this point. I'm not exactly surprised. 1st generation on average games tend to suck since developers are still unused to the new tech. 2nd generation and onwards is when they typically start to impress me.
The only thing I don't like so far is the unnecessary implementation of Kinect in some games. I'm looking at you Forza.