Sure, Kinect can be used for good - stuff like possibly helping the blind. But it also can be used for evil.
And I'm not just talking about rumored Forza 4 motion controls.
UK-based Pufferfish design makes spherical displays for a variety of uses that range from Coldplay's Viva La Viva Tour to Disney's Epcot centre. Interactive mapping company Earthware uploaded a series of videos with its software running on a Puffersphere. Included are a couple of Kinect powered tech demos like an Eye of Sauron and just an eyeball.
Being tracked by a large glass freaky, but being tracked by the Eye of Sauron is down right scary.