This is great news for virtual worlds.   Every since I first saw Project Natal (Kinect) I have been fascinated by the face recognition and the ability of the camera to recognize movements.  Linden Lab engineer, Merov Linden (Phillippe Bossut, who once headed Project Natal - now known as Kinect), has been able to integrate Snowstorm Second Life Viewer with Kinect. 

In Merv's demo he makes simple avatar movements by specific physical movements.  The avatar isn't mimicking the movements of the user, it is responding to programmed trigger movements.

http://www.youtube.com/watch?v=ECNTlOz5-pU

I am excited for Virtual Worlds to see what direction this will take our avatars.