I would assume that Kinect's tech is not so anthropomorphically bound that it can't work with physical objects either in the room or in someone's hand. Using props seems like a fairly simple way to increase the interactive options of the platform. Are there already games on the horizon doing something like this I just haven't heard about? As far as gimmick mania goes, props have a lot of potential.
Kinect Support
Concept »
Kinect is a camera and depth sensor-based peripheral for the Xbox 360 that allows users to interact with and play games using their whole bodies, rather than using a standard controller.
Using Props with Kinect
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