Twisted Pixel Games' Lead Designer Dan Teasdale revealed more about the process of designing The Gunstringer for Kinect. On the game's official blog Teasdale speaks of Kinect's ability to be much more than a conventional gamepad or keyboard and mouse combination.
One great lesson we learned from our Kinect prototyping: because it’s reading in information about your body and not just a point, we can get the information of where your points are in real terms. “Your hand is stationary next to your hip” is incredibly more useful than “this dot of information isn’t moving”.
He also noted that they're designing the game in such a way that it will holster pistols when players hands are at their sides and translate arm movement into crosshair movement on the screen. He even noted the character will fire his guns when a player kicks their hand back as though from a real gun's recoil. Read more on the game's official blog.