Everyone already has a smartphone, laptop, tablet, etc. All of those devices have cameras and microphones. Most of them can track your location to within a few feet. They have your email, your web history, your bank accounts and passwords. And people are worried about the KINECT? Please. The hardware to watch, listen and track you is already in your house. You're already trusting the companies not to be (too) evil, and trusting the software to protect your privacy. What's one more device?
First of all, you're assuming that everyone who might have been interested in the new Xbox has a smartphone, uses all of its features, and utilizes all the other things you listed. I turn off location services on my phone, I tell it not to store any passwords aside from syncing with my emails, I don't keep any passwords saved in my browser, log out of every site, and so forth. I do my best to minimize the amount of spying I leave myself open to in the insane world we live in, but unfortunately you're right and it is impossible to remove all of it, short of going to live off the grid in a forest, and I'm not that insane.
But the point is that I try to minimize those things, because I don't like them. I don't like my pictures having geotags, I don't like facebook having a map of my locations, I don't like apps like foursquare and the like, and don't use them. The new Xbox's Kinect is also intrusive, constantly on, constantly watching and listening. No I don't expect it to start trying to kill me or plot my destruction or something, but I don't want it used to send me more targeted ads either, or for the inevitable police and government requests to use data collected by Kinects in their investigations, and so forth. The only webcam I have is on my laptop, and that is easily turned off, or disabled outright, because I have full control of my laptop. That isn't the case with the Xbone, where I am at the mercy of Microsoft and whatever they decide to do. The Kinect isn't the reason I won't be getting the system, there are plenty of other reasons for that, but the Kinect certainly doesn't help, and I certainly don't want it, and the existence of a list of bad things is no reason to add another one to them.
