1UP--
Yeah, I wouldn't want to use speech in a game, either (apart from being slow and inaccurate, it also strikes me as cheating). I'm much more interested in it for the front end.
Microsoft operating systems have a built-in speech subsystem, and separate vendors can plug in their own recognition engines. For each user, it maintains a "speech profile". The practical upshot of this is that you can spend a few minutes training, and your speech recognition will be improved over all apps that use it.
Not only that, but training often isn't even necessary. There are two main types of speech recognition: dictation and voice commands. With dictation, you're speaking text and the computer is translating it into the written word. Dictation is a very, very computationally difficult problem, and a lot of training is required to get anywhere near acceptable accuracy. Voice commands are a much simpler problem. With voice commands, there's a relatively small list of valid words, and the recognition engine is just trying to decide if you've said one of them. Modern speech recognition engines have advanced to the point where they can do quite well at voice commands without any training at all.
If you have Windows XP, try installing the Plus! XP pack and firing up Windows Media Player. If you plug in a microphone, you can say "play artist Pink Floyd" and the recognition will be good enough without any training to do just that.
By the way, it's really unfair to compare your computer to your remote control. Your computer is a behemoth that runs a cycle in a billionth of a second and has hundreds of millions of bytes of RAM. Your remote control is a stupid little logic controller with virtually no memory. You'd darned well better believe your computer will do a better job at speech recognition.