I think this new iteration of the Kinect looks way better than the first one. From what I've seen its pretty much lagless, and really way more precise. However, this game does not look good at all. It really seems as if the Sess is just flailing his arms in front of the camera. It honestly just looks silly, and doesn't really seem to work well at all. The whole kicking and punching to your front but the game being seen from the side doesn't look to natural either.
I think the best use the Kinect 2.0 will have (aside from the whole integration with the TV and Operative System of the XB1) will be as a complement to games controlled with traditional controls. The fact that its bundled with every console means that devs will be counting on their whole userbase having them, so they will be able to freely integrate them into their games without worrying about parting their playerbase.
Imagine a survival-horror game that can learn from your reactions and adapt their shock moments to make them more frightening, or a shooting game that can use your body as a way to control simply the leaning of your character. There are plenty of possibilities aside from 100% kinect based games, don't you think?