At the same time, the Xbox will handle those streaming methods most dump their cable for (well, not all of them). I've considered trying it, but haven't yet, but I would think some could run an HTPC through the console for media consumption while playing games. Myself, I have my desktop hooked up to my TV already, and I don't want my console going 24/7 like my PC, so I haven't really considered going with the pass-through solution for watching stuff on my console that way, but it could be done.
I don't honestly think that the Kinect will ever live up to its gaming potential, not on this console. It's still too imprecise, and by a solid margin, and they still treat it like everyone is going to use it in a living room. If you're in a bedroom, like I am, Kinect Sports Rivals becomes a chore--not because of lack of movement space, but because of the inability of the Kinect to track me in that small space.
I have to wonder though, what IS the potential of the Kinect? I can't say that major releases like CoD or Halo would be worthwhile with a Kinect in ANY way. Forza tried Kinect integration, but IDK if they even put that into the new one. Racing games could use it for wrist tracking to drive, but I'd rather see that in an arcade racer, where it's less-likely to suffer when it's inconsistent. Sports games in an open area could be cool, and I still believe that Rivals NEEDS to have a baseball game, because I stand there thinking "this was MADE for baseball" every time I play it (why they elected for the crap Target Shooting and poorly-conceptualized soccer games, IDK).
The things that the Kinect does well, it does really well. It's decent for controller-less control of the system, and it's nice for navigating through multiple button presses with a single voice command (switching to a different game, viewing Achievements). It's also nice for Twitch streaming, if you're into that. For what Microsoft WANTS for the One (a wide-ranging media/entertainment device), the Kinect is brilliant and necessary. For what consumers mostly ask for (a solid, affordable gaming experience), it falls a bit flat.