I am surprised my room actually can, theorically, support Kinect but not without moving the furniture to make it possible. Still, even being possible, I simply don't like Kinect that much to be worth changing my living room for it and it would need to be a truly life amazing device to be worth it.
However, I surely lived in some places which would not allow it unless I simply moved the same furniture out of the room.
I guess Kinect end up with it's high requeriments that way...
Original Kinect had higher specs and could, between other things, work at smaller ranges.
Original Kinect is changed to current, weaker version because of it's high price, technicians warn there would be issues, like the new range.
Execs ask if the range thing can be improved later while keeping compatibility with the current games and apps. Technicians say it's possible.
Kinect is launched in the current state to give 3rd parties time to get used to the new hardware while Microsoft works in improving it.
This, or everybody working on Redmond have big rooms.