I am not familiar with 60Ghz. I agree that it has more problem going through obstacles. But usually when going higher frequency we can compensate by using more bandwidth. (Terahertz antennas use this to do crazy stuff.)
The main reason it was chosen was to make it smaller to have everything integrated on a chip, and have an antenna array.
Walls are typically static, which means they won't appear in the hardware amplified Doppler-shift signal (below 100Hz) which detect moving objects. (Radar works by amplifying the low frequency beating that occurs when adding two signal of high but close frequency 60GHz and 60Ghz+50Hz, low pass filtering then amplifying.)
Typically the limits about power are dictated by how much attenuation (distance + obstacles) in dB *4 because inverse 4th power law, but as long as you are above the background noise you can amplify.
Also here it is not trying to form a focused image, it is just gathering some signal to run some pattern detection algorithm.
Even if there is a lot of noise we can integrate it with software fft over a long period of time, because we are trying to look for breathing movements (0.3Hz) which are even slower.