"For some reason MS could not come up with practical ways to incorporate normal movement within a game as well as the hand tracking. I honestly think this could have been resolved if they had made a single hand controller or something like that, but it was never done."
Nintendo got it right with the Wii (not the wii u), the nunchucks are the solution to this, immersion need, not kinect.
The crazy thing is they abandoned their nunchuck (wii mote) motion controllers, that where so good and ahead of its time.
And they did it for the lame gamepad <.< that in turn sucks as a controller.
Handtracking is going to be a resource loss, thats going to slow development and result in nothing noteworthy for gameing.
This is Sony stepping on the banana peel, instead of learning from the results kinect showed.