The greatest misconception about Kinect is that it's just another peripheral for the Xbox 360, like a racing wheel or arcade fighting sticks. Kinect alters the gaming experience in far more important ways than these simple hardware additions, yet that's how many people seem to regard it. Expectations surrounding the device are often warped in one direction or another. 

Developers do it too. Traditional games have all hinged on one thing: tactile input by players. By removing that requirement, Microsoft has created a system with endless possibilities. Yet the titles being developed fall into two tired categories: games that are too shallow to matter, and traditional experiences with improbable control schemes shoehorned in. There are exceptions (Child of Eden, and to a limited degree, Dance Central), but until developers break these moulds en masse, Kinect will continue to be just another peripheral.