Yes but the early backlash and signaling from Microsoft probably scared off a lot of developers. A lot of mistakes were made. The costs were also a big factor. Perhaps the flaws with the tech were insurmountable.

I can't help but believe with the same opportunity, using a different approach to market and promote the technology, it would have become a stable accessory with a very big customerbase.

I've had many discussions with parents who are absolutely OK with their kids playing games 'controllerless' but against the idea of their young kids using gaming consoles (couch zombie with controller/other input device). Kinect has physical movement and allows for young children to have fun before they can develop any competent skill or understanding using a controller - this disrupts a common bias parents have against their young kids playing a videogame. Missed opportunity.