Everyone wants Kinect, it just needs to work before people realize that. It's evident with Siri, Google Now, and Cortana, the voice controlled living room is something people will absolutely use. MS had to force it on people in order to get enough adopters for developers to develop games for it, and justify the continued development that is going into it. Unfortunately they've shot themselves in the foot once again by going after the immediate numbers and not sticking to their long-term plans.
Even if the theoretical support of what Kinect could offer is something a majority of consumers want, that doesn't mean the Kinect was a sound idea.
For one, there's a serious design issue with Kinect in the current market of cross-platform games. Devs aren't going to put too much energy into really utilizing the device, because there's no reason to. Not when it's not a peripheral the entire audience (or even a solid majority) will have. Even if the Eye offered a serviceable base level for them to offer support at, not enough PS users will own an Eye to make that worth it. So we're really only talking about console exclusives here... and console exclusives already have a lower potential market. Having to experiment with a new peripheral input system when you're already working with lower potential sales is not that attractive.
But then there's the fact that the Kinect ISN'T what people want, per se. Sure, having the ability to control things by voice isn't bad. More options is always nice. But I'm not desperate for it either.
I use Siri because there are times when manually doing what I need would be really annoying. But a huge part of that is the fact that my phone has a small screen, my input ability is minimal, and I'm often moving while doing it. None of these are factors with a gaming console right now.
And the rest of what would sell Kinect is the motion gaming aspect and, well, I'm sure that market COULD exist. But I don't think we're technologically at a place where it could
have been a big selling feature this generation. Give it another decade, and I wouldn't be surprised. I'd be very surprised if it was this one for the non-casual markets.