So yeah, this needs a PC as the intermediate and the PC digests the Kinect data (using the homebrew sdks), his code turns the motion data into gestures, and then turns that into controller movements/button presses for the PS3 via the bluetooth sdks.
It's cool just to do it, and it doesn't need jailbreak. But it also means you're unlikely to do anything awesome with it, because you have to take some game that is already designed for the SIXAXIS and map motions crudely onto those controls. I can't think of many (any, really, don't want to say none - Okami? Whoops, PS2. Flower?) where emulating a controller with gestures is going to be superior to using a real controller. You need games that are written for the Kinect from the ground up - that goes for some awful Kinect games too. Plus you always need a PC near your game system. - which is not quite but almost as bad as the Move dev kit requiring a PS3 to work on a PC.
So again, it's great that he can even do it, but I don't see much in the way of game-changing here, either figuratively or literally. Perhaps he can get it to do something about those loading times?