We couldn't have been more excited at the though of Kinect recognizing even more of our moving parts, but it appears that rumors of a Kinect update said to improve the camera's resolution and observatory fidelity were incorrect. "We're constantly working to expand and improve on experiences for Xbox 360 and Xbox LIVE" an Xbox rep told CVG. "However, this rumour is completely unsubstantiated."
So, while Microsoft will (of course) continue supporting the peripheral in many ways, an update that would specifically improve the accuracy of Kinect's sensor doesn't appear to be in the cards. We'll have to keep looking to unofficial hacks for new Kinect functionality -- at least for now.