Wow, it sounds like it will need some powerful hardware. Still it is very exciting, and I think goes along with some of my predictions/wants.

So, does that mean it will not have a red light pointing at us? And will it still work in dark and dim rooms?

While I love my Xbox devices,... lol gtfo Kinect 2, only want you for navigation purposes and stuff like head panning.

I realize it's not a major point, but its coming.  I think the point of it is simply to allow the gamer to remain emersed, as well provide a similar experience for both controller-free and controlled gaming experiences.

The Xbox 360 in multi-player is peer to peer, so this would be a peer to peer exchange of positioning data.  Since these are Avatar-based games using the Avatar system incorporated with the Xbox 360, it would stand to reason they're using Microsoft software.  You can't use Kinect on the Xbox 360 without using Microsoft software, so I would assume the same is true in Xbox 8/Kinect 2.

It is possible that they may use a short-hand rather than a 1:1 representation.  I'll verify that though.

Wi-Fi speakers?  Better noise cancelling?  Dynamic volume adjustment?

It doesn't really require powerful hardware.  A dedicated hardware thread will likely provided sufficient CPU processing power for the Avatar stuff.

No.  Interms of darkness it won't be much different than the current Kinect.  The major difference is the use of Time of Flight depth sensing and filters to actively filter out anything but the frequency of light Kinect 2 is emitting. 

It currently is an Xbox 8 title, no longer an Xbox 360 title.

No.  All sourced.

What I've provided so far is not a list of major advancements but evolution of features.  They are things that will work better or features that have been improved upon.  Nothing seriously ground breaking.  Just features being added to Xbox 8/Kinect 2.

One of the interesting "possible" new features will be the ability to automatically dim the lights in the room.  However, it'll require a computer and an add-on accessory.  So when you go to play a game or watch a movie, the console will signal the computer via the network, it'll activiate the accessory, which will dim the lights.  The computer could be eliminated, I think, but it's meant to retain data on usage patterns and such.  This would also be possible by using a tablet or smartphone.  Using an app, you could turn on or dim lights remotely, or while walking into a room by accessing an app rather than fumbling for a switch. 

Since the consumer product hasn't been announced or even hinted at, let alone Xbox 8 integration, I won't say more.  However, it seems Xbox 8 integration would be logical considering you're sitting on the couch, playing a movie, it'd be nice that as soon as you hit Play the lights dim to 10% or turn off altogether.   

I just hope they will have all the fixes I listed in another thread to address the current problems, the rest are all gimmicky as hell. How much money does MS want it's consumers to shell out for all these things? It's getting a little ridiculous with them trying to act like Apple with the whole Windows 8 Eco System bullshit.

Like this?

I think we'll see something along the lines of a Miiverse/Home available for Xbox 8, with some interestng features. 

But Kinect 2 will offer better depth/positional recognition.  Fewer dangling extremities.