Sweet. I've been waiting for a Kinect game along these lines since I got the thing for christmas. There's only so much pretend sports and pretend dancing I can handle, eventually I'm going to need some pretend beating someone up with super powers. Or at least any Kinect fighting game that isn't Fighters Uncaged *shudder of revulsion*.
PowerUP Heroes lets you play with your Xbox Avatar and select a suit which grants you different powers. There's a few interesting ones in there like the Necromancer suit that has the ability to summon skeletons to fight for you. It's not clear from the crummy announcement trailer embedded below exactly how you play but expect plenty of waving and jumping.