Local processing for this kind of technology is a pretty big deal. Kinect still sends entire frames to Microsoft, which means a huge privacy breach waiting to happen (hi, Sony!) Still, those frames are used to further enhance Kinect's algorithms for image processing, so I'm curious how they expect to address this part of the evolution of the product, if at all.

PredictGaze wants the TV to look at you http://gigaom.com/video/predictgaze-vision-control/