Let's follow the silly logic that everyone is using against the Kinect, You pressed a "button" (not a physical on/off switch of course), that told you that your data service was disabled. What assurances do you have that in fact, your phone is not still transmitting data? It's been shown that this is in fact not the case in certain instances. OK, that's fine, but I can shut it down" What assurance do you have that when you power the device down that it's still not running in some capacity? There are clear evidence that supports this happens too. What if you take out the battery (if you have an Android phone) ? Well, maybe the government has a secret secondary battery inside the phone that still allows communication when you power it off. In fact, maybe the reason the iPhone battery isn't removable at all is because theyre even further entwined with the government to ensure that there a low level power state even when people press "turn off" the phone so that they can continue to track data on you? When you're operating in this hazy level of discussion , then it stands to reason that any and every device that has the capability to communicate to the internet is always collecting data on you every single moment it's present (whether on or off).
There will be options to disable sharing, the microphone, etc on the Kinect. MS has already addressed this. The concern people seem to have is that the camera still has to be plugged in to the Xbox which theoretically means that data can still theoretically be shared. If we want to use this crazy logic, then a fucking video games console is the least of our worries.