Continuing the trend of Kinect doing awesome things in everything but video games, take a look at this web browser that's been built specifically for Microsoft's motion-sensing camera.
It's called SwimBrowser. Sounds like a stupid name until you see it in action, because "swimming" is exactly what you're doing as you gently wave and roll your arms around to navigate the web.
While something like will never replace the speed and accuracy of a mouse on something like a desktop, on living room equipment — like consoles or TV sets — this would be the perfect way to quickly check IMDB, get a weather update or check out a YouTube video.
It's got pretty much everything you need working except for text input, which wasn't specified as part of the challenge this was put together for. That said, throwing in something like a console's "chatpad" interface (or even this) should work just fine.
[SwimBrowser, thanks Tiago!]