It really gets impressive when he starts moving the 3D image around. It's a pretty sweet effect, I'm sure it will end up in a game or two for Kinect. Wow, video games are getting so awesome.
And it's a shame that Microsoft is annoyed that people are trying to unlock the full potential of their hardware and calling it "unsupported" and trying to make it sound like people are terrible monsters for buying their products to experiment with.