This is impressive. I watched the video. Personally I don't like Kinect systems. Late response, akimbo body positions. Not for me.
But the impressive issue with this was not only the tight copycat mimicry of the avatar but the potential of having multiple wearers in a tight vicinity, or, as the information suggests, many wearers in a larger vicinity such as a Gymnasium for example.

Lazer Wars. Next Step, Virtual!
Imagine a jungle setup and a team v. team situ. There'd be nothing in the hall but the game itself would show the halls perimiters as an obstacle in the visuals.
We already have this large hall setup as a kind of space lazer game over here in the UK and France which is big business as corporations send their employees to these for "Team work" psychologies. (Blowing the sh** out of each other!!!!!!) This would be the next level up.
I'd play. :D:P