YES PLEASE!!
Kinect is pretty accurate, some games more then others, but of course it will never be 100%. Kinect was probably rushed out to make it in time for the holidays, which is fine because increased sales will "HOPEFULLY" mean, increased QUALITY games in the future. Now if they can improve the technology even further with just a firmware update on the Kinect...then it has the potential of being a real success.

This warms my heart. I'd heard they'd dropped the finger tracking ability, and the cynic in me thought that it was a deliberate ploy for Kinect 2.0, now I'm extremely hopeful this can be done with Kinect 1.0 )

If they can add finger tracking this will increase the different types of games they can create. That would be awesome, I just hope it doesn't take 2 years for this technology to come out.

In 3 years from now we should see the next generation of consoles and probably Kinect 2.0.

Read the Anandtech review of the Kinect. The guy talked about how he was very confident that the internal IR sensor resolution was above 640x480. from the reviewer: "The projected image doesn’t change in time - it’s fixed this way. The IR CMOS sensor images this pattern projected onto the room and scene, and given the camera’s displacement a few inches from the projector, from the displacements in the semi-random projected pattern is able to back out the corresponding depth image. That computation is done onboard the Kinect itself, and it’s entirely possible (read: likely) that the IR sensor inside the Kinect is higher than the 640x480 resolution of the resulting image."

Update, as in new hardware or LIVE updates?

: Sounds like software compression, so Dash/Kinect specific software update, not hardware.

I wonder if finger tracking would actually make much of a difference in most games. Piano playing games, maybe, but your average "jump here go there" games... not so much. Either way, an update is always welcome

That upcoming Steel Battalion game will probably benefit from finger tracking, if (presumably) there's a lot of buttons and levers to press in your virtual mech suit thingie

the piece said that they artificially restricted the bandwidth available to the Kinect because they need to guarantee that wired USB controllers could be used at the same time, even though most people use wireless controllers. I say, screw the gamers who use wired controllers. Besides, this could only come into play if it's a hybrid kinect game and you have multiple people using wired controllers at the same time as the Kinect. Kinect-only games don't use a controller so it seems strange to reserve bandwidth for the wired controllers.

You could have a game that simulates you playing a videogame using a controller...WITHOUT A CONTROLLER! Imagine the possibilities.

Srsly tho, more accuracy is always a good thing.

Bad news guys.....Looks like we're going to have to wait for Kinect 2 if we want improved recognition. Microsoft just shot down this rumor.
http://www.joystiq.com/2010/12/23/microsoft-shoots-down-kinect-improvement-rumors/

Every company shoots down rumours but I still wouldn't be surprised if an update arrives...the fact they changed kinect to rely more on software than hardware makes it perfectly legitimate than improvements could be made. How great i dont know!