Just as long as I don't have to pronounce it like a wannabe ganster. 
Whatever "fires your rockets"...moving along....
Very likely true. But my question is do you still think that is going to happen on the 360? Do you still believe that you will see big-budget games with deep gameplay and narrative rather than exclusively casual gaming stuff. Or even smaller budget games that manage to accomplish the same.
Using the original XBOX analog, I would say not only "yes", but that it
needs to in order to show that it is a viable "next step" for any new platform MS puts out which includes the technology (either as it is, or in a more refined form.) If it cannot show itself to be more than a gimmick (I believe it has already gone beyond that, but for the sake of discussion...) it will not have succeeded in developing the market for the future of that genre of gaming.
It is also important to note that the next step of bringing real world items into the virtual world, as was originally promised in the previews of the technology, is now being given some "light of day". If you look at the "
Kinect Fun Labs" site, you can see some of the newer things currently being done, which will undoubtedly be made part of the Kinect API for developers, and be finding their way into gaming.
But again, you are placing emphasis on the style of game
you like, not the style of gaming the Kinect is best suited for. Dance Central is a
great game. It sells Kinects and 360s. One could even say that titles such as this have more replay value than some (or most) of the titles you place on such high pedestals. The "sports" games hold their own as well, and they should, considering Wii Sports was responsible for many, if not most of that consoles sales to the non-avid gamer market. Does Kinect have a place in a title like Mass Effect? I don't know. But I have stated before that it will only take another unique use of the control scheme, used to the same extent as it is used in Dance Central, to trigger another mass buy in. If they can't find one, it won't be for lack of trying

. But there is always still the "nuclear option" of hybridizing the control scheme. The addition of some type of traditional control to the motion capture will open up a big new world of possibilities, and I predict that you will see this happen within the 360 life cycle, albeit not until the "controlerless" options are nearly exhausted.