Watch this video. It's Max Payne for PC played using the Kinect sensor and a Wii Remote/nunchuk combination. Using FAAST, a tookit used to map gestures to keystrokes developed at USC for use with PrimeSense systems (Kinect's camera included), motions are used to control most aspects of gameplay. Bullet time is activated by leg motion while movement can be controlled with leaning or the nunchuk's analog.
The effect, as you can see, is a physical implementation of the bullet time mechanic used in Max Payne in a way that's natural and doesn't sacrifice much in the way of accuracy. This is exactly the sort of thing I have been trumpeting as the reason core gamers should get excited about Kinect. As you can see, it's certainly not perfect. But as developers start to consider the possibility of making games that are not either controller-based or Kinect-based, this is the kind of thing we can probably look forward to.
I need a bigger living room.