Microsoft showed off some amazing new, non-gaming features of the Kinect at its E3 press conference today, showing off the device's ability to recognize gestures and voice commands. Kinect features motorized tilt function and a multi-array microphone, in addition to the camera and movement sensor. So it will swivel to follow you.
Microsoft showed off the interface as well. Kinect Hub is a Dashboard for the Kinect. You'll be able to navigate with either gestures or words. You'll say, "Xbox, play music!" and it will. You'll be like Scotty on the Enterprise!