1. Kinect does not watch you at all times. you can turn it off entirely, or when you don't want it on through the system itself, or turning off the console.
2. Used games will work. Publishers are working on deals with used games dealers to provide incentive to sell used games. Still being worked on.
3. You DO NOT need to have your console on 24 hours a day tied to the internet to play a game. If you own the hard copy of the game you can play offline. If you RIP the game to your console you need to have online capabilities to check the authorization code to make sure the copy is legitimate.
Granted this is new information coming out, I hope to see some misconceptions cleared up.
Read more: http://www.disclose.tv/forum/xbox-on...#ixzz2WRNP6atk