So, registering on this forum, just to post a reply. To address some of your concerns about the crappiness of kinect :-)
Here is the kinect head tracking "toy demo" (NOTE: That kinect for windows exists now):
http://channel9.msdn.com/coding4fun/kinect/3D-Head-Tracking-with-Kinect-SDK--WPF
Also, I know this isn't really a "flight simulator" - but after trying "Dance Central", I am completely convinced that Kinect is a viable, state of the art piece of technology.