Kinect is not always on either. Just because its connected doesnt mean it's on. If the government wants to spy they have much better avenues with a smartphone(gps, mics, cameras, text history, call history) and laptop(cameras, mics, chat and search history, emails) than they ever would with kinect.
think about how you use those devices
and even if there's 'better' ways it doesn't negate the fact this is still bs