I've had the kinect since release and I really like it. Played the kinect adventures alot so far and am proper hooked on the dodge ball type game. Also had a bash at dance central and it's amazingly responsive.
I've been playing in space as little as 6 ft and have had no problems. Once you learn what the kinect looks for movement wise then it becomes alot better. I might have a go at the new Harry potter game as that looks abit of fun. I can't fault it at the minute
Your front room is probably to small in the layout you have now. If you had the tv in the corner where you used to have it then that would be more than enough space.
If your a hardcore gamer then stay away from this as it's not for you. If you like to have fun, have a family, or like entertaining alot then this is ideal. It's alot of fun. The other key features just to name a few, is that once plugged in you can control your xbox either by voice command and movement. It also acts as a mic, removing The need for a headset. There's video chat aswell. So to summarise I'd probably give it an 8 out of 10 as it's not just made to play games on