I do not understand the major complaint about the Kinect. I understand the price complaint, but the Kinect is able to be shut down in various stages (Full On, Passive On, and Off). If you are still paranoid about it, then stuff it in a cubboard.
Microsoft is heavily invested into the Kinect, and is trying to encouage it to succeed. To be honest, it has some advantages and nice features, so I can see their desire to give it every chance to succeed.
Personally, however, I think that playing major game titles completely on Kinect is not going to happen any time soon. I would not want to at least. Voice commands are nice, but it's not ready for primetime as a full controller yet.