Watched our neighbors kid play some dancing game with it. Was surprised at how well it picked up his motions.
In time more games will come to it, and the technology will evolve. Remember, at one time the original Nintento pad controller, with it's directional pad and 2 buttons, was a revolution in game interaction.
Some "experts" are saying interaction with TVs, appliances, etc will change in the future. TVs will work on voice, movement, and/or cellphone control and be gone with the standard remote. Appliances will all be internet accessible and send status updates to your phone, and be controllable from anywhere.
A lot of this tech is already there, but in 10 years most of it will be standard equipped.