First of all: YES! My theory that Kinect could be used for cheap mocap has come to fruition! Sort of...
Second: Relax, people. Kinect Porn Games probably weren't mentioned in Revelation as a portent of the End Times. While I still believe that realistic (inexpensive) virtual sex will bring about the downfall of society, the Kinect will not get us all the way there. And really, what's wrong with playing around and fantasizing a little? Other than perpetuating the (possibly truer than we'd like to admit) stereotype that nerds are sexually frustrated and prefer to live vicariously through simulations, I really don't see how this hurts anyone.
Keep in mind, the only reason girls and women aren't interested in this kind of stuff as well is because we haven't invented a computer that can accurately simulate the things that turn them on. Programming an AI to simulate a suave, dominant male personality that is also sensitive and caring is a bit tougher nut to crack.
Newtonian mechanics? Can do!
P.S.: The world population is now 7 Billion. I think anything we can do to keep men from impregnating real women all the goddamn time is going to have positive benefits.