From the reviews and input from real people that have the game...
Some of the reviews are bogus. Those are the reviews that say this kind of game is meant for a controller and that forcing people to throw punches rather than push buttons on a controller is dumb. These are the wrong reviewers to be reviewing the game.
Some of the reviews have legitimate claims. If you're a hardcore gamer, then the story line is very cliche. All the horror bits are things that you've seen before (i.e., you're facing a bathroom mirror which is clear, you look down, and then you look back up to see a scary image). So if you're arguing that it's a bad game because it seems like a Kinect version of condemned, then you wouldn't be making a bad argument.
For those who have not played a ton of horror games, they've had fun. The controls work. There is just something nice about pushing a door open with your hand or kicking it down. Or slashing a machete through the air to decapitate a bad guy. There's a guy I know whose gamerscore is in 70K range and he's a pretty hard core guy. He liked the game a lot and said it took him 9 hours to finish the entire campaign (and he finishes games fast). He took exception with some the reviews where it seemed like they didn't play the game long enough or finished it, particularly when they referred to super simplistic puzzles. Yes, it starts off with simple puzzles and mechanics but it does ramp up as the adventure progresses. If you're only playing an hour into the campaign, then you're really in no position to make a judgement.
It is a single player game with no online play so I'm not sure how much replayability there is. I mean, you can explore and find trinkets around the map. But me personally, I don't like to explore. My friend drove me crazy when he wanted me to help him find all the COG tags in Gears of War.