You guys do realize that after doing the first set up, you just have to verify the system online once, then can disconnect it from the internet which means no one can be watching or listening to you play Call of Duty if you are that paranoid. Like the government is wasting their time getting videos of gamers playing Xbox. Unless you are a potential threat to national security this shouldn't worry you anyways.
can you link your source for your claim that the Xbox One will continue to function if the kinect is turned off (off, not "suspended") or covered