I feel exactly the opposite of you.  The combination of Kinect and a controller is where a lot of potential lies. 

With time Kinect and Move will basicly do the same thing when it comes to more hardcore  games. PsEye can track some parts of the body well (head for example) just not the whole body. With a controller there is less need to track your whole body.

You realize Kinect is an attachment for the 360, right?

Oh I don't think that MS' approach is bad, I think it makes perfect sense considering who they are trying to attract. I just don't have much interest yet. I'm sure my kids will be asking me about it soon though so I may be getting Kinect sooner than planned.

It'll take time, but I'm sure there will be compelling experiences coming that use Kinect.

The real question is whether 'core gamers' will ever accept it.  The Wii STILL gets all kinds of hate (hey, I still bash on it sometimes too just for lighthearted jokes) despite having some great core experiences and huge successes.

IGN is hilarious. I remember seeing Natal announced last year and thinking wow I can interact with a virtual kid, I can play games with my wrist movements while sitting in my chair. With the flick of a wrist I can fast forward a movie, I can move in any direction as fast as I want and it'll recognize my every movement.

Then seeing Kinect this year, you can't play games sitting down. Their is no virtual AI kid to play with (Milo) the tech demo showing Milo is nothing like the Natal one, this time he skips rocks with you and says about 4 different responses to everything you say regardless of what you say. Then if that weren't bad enough the console can't read wrist movements anymore so you need to flail your arms around like a moron to select your movie or fast forward. Then seeing it at PAX and getting hands on with Deca sports just to realize theirs serious lag about the only demo I saw worth anything was Dance Central.

In the end Natal was a far better product then Kinect is today, Microsoft set the expectations so high at E3 2009 that theirs no way their final product can compete with the image Microsoft gave it.

I've said it before but I'll say it again.  Dev kits were only sent out to most companies after E3 last year.  So it's only been a year that companies have been able to work on Kinect games.  A year isn't enough time to do a AAA game even when you know the system well, nevermind when you have to work with an entirely new control scheme.  At least Move developers can use knowledge of the Wii to create games.

More core games will come and we're already starting to see signs of that.

People doubt MS's ability to use voice controls.  I don't know why.  There's an app for my cell phone that lets me talk to a robot and it responds appropriately 8/10 times, no matter what I say.  And it's FREE!!  I believe MS will come through in the end.  Technology is progressing at an alarming rate.