The one thing that Kinect needs to be a real powerhouse is to be able to detect finger movement and handturning. Microsoft knows that and is hard at work trying to get it implemented into the system. While the quality of the cameras in the Kinect cannot change a lot is determined by the firmware and can be changed and improved over time. Things such as the depth sensors aren’t working at full capability because they have to take into account the fact that the Xbox can use multiple USB devices at once. This halves their USB output and make it so their depth sensors have to work at a lower resolution.
This would be fantastic news for Kinect. It means opens a whole world of hand signals that you can use to command stuff or maybe like A Power Glove game minus the glove.