I see it as Notch offering Bethesda a way out of this that lets them save face and not come across as the evil empire. The issue seems pretty ridiculous to begin with (like if George Lucas tried to sue someone for using 'Wars' in their title), so this might be a win-win for both companies.
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I'd recommend trying it before you bash it. I've tried it on several occasions in the past (and now own it) and it's accuracy/lag do not feel significantly worse than the wii. I've seen zero problems with lighting, clothing, etc. The voice recognition is actually quite excellent and it even works reasonably well while a video is playing.
The required distance from the device is annoying though. The menu system as well, but thats a software problem and can be fixed. Check out the dance game for a great example of an intuitive menu.
Even if it fails as a gaming device (which I doubt), I still see the ability to control your entertainment system without a remote as being common place in the future. For example, I was watching a movie on my xbox while I was reading slashdot. When I wanted to concentrate on replying to a post, I just said "xbox pause" without my fingers every leaving my computer. In fact, I hope the kinect is a finanicial success, because that will inspire competitors to emulate and improve the experience, which means even more awesome stuff for consumers.
Sure, but how many of your 40+ employees can key data at over 100 WPM, carry on six different conversations at once (and keep them separated), and perform a rather wide variety of small jobs under rapidly changing circumstances -- and do it well? How many of them will self-organize into groups to tackle a problem without formal leadership?
I'd put money on the fact that the 17 year old can't do any of these with meaningful results in a business environment.