You will only be able to see this logged into Live (i'm Beta testing) I am not normally paranoid but this seems like a HUGE invasion of privacy, it clearly says background noise will also be recorded so it will not just record your voice commands. I could even see something like that going as far as law enforcement eavesdropping on people, hopefully not without a warrant or reason but none the less it could be possible and it shouldn't be IMO. Now, You can simply block the voice collection, so I am more or less pointing it out to everyone in case you haven't seen this and want to block it.
I would assume it is something they will always have in place, but possibly not. I am not Beta Testing Kinect only the dashboard. I wish I had Kinect to beta test that would kick ass.
They won't be taking random recordings if that's what everyone is scared of. Any recognized voice commands with an awkward probability of actually being a voice command would be sent, for optimization I'm assuming. Same idea with background noise. But yeah, I guess they could still catch your shit in the background.. But they wouldn't be using it to incriminate you.. But yeah, good idea to block that. Although I believe that is only for beta testing for.. optimization..