That looks like no fun at all.
Its actually pretty fun - looks like they're playing the Kinect Adventures - probably the river rafting. I got my Kinect last night and was able to play around with it for about an hour. It came with Kinect Adventures, and I also got the sports game and the racing game - all are pretty fun once you get the hang of not having a controller. My wife and I had a real kick playing the racing game together - we were rolling laughing at times because it was so fun/funny! Oh, and one of the funniest things is that after each "game', you get to see pics that were snapped of you playing in front of the controller - some of those are hilarious!
It will be interesting to see how well the entertainment value holds up once the novelty of not using a controller at all wears off, and I can say that there is a lot of room to improve the sensitivity / responsiveness especially in menus and navigating through the game options. For the most part, once you're actually IN the game, its really good. Also, the inconsistency in how different games navigate menus is a bit annoying, but i'm sure they'll get better.
I'm a bit bummed that I can't play in my home theater since you need quite a bit of space in front of the screen and my front row of seating is in the way. I had to move my Xbox360 to the livingroom to play - not nearly as cool (46" screen vs 92" projector), but still fun!