The kinect has been used for all sorts of projects. Many of which I have covered here on element14. Start here with this post, it has a lot of info about the Kinect Accelerator program. Microsoft is trying to get more people developing with the device for Windows.
Also, a rumored high-end Kinect is coming to Windows 8 in 2012.
Now I have an excuse to buy a kinect. This modification gives several neat ideas. All I need to do is find time to play with these things.