The Kinect was essentially invented for Kids, so yes, your daughters would be all over it.
I'm not really aware of any specific games that'd be suitable, but I do know there's a Sesame Street game, that's meant to be great(for kids, obviously), a Double Fine game called Happy Action Theatre on Xbox Live Arcade(which is the only Kinect game that's ever gotten my attention, it looks like hilarious fun, for all ages). And then there's the numerous dancing games, like Dance Central and Just Dance. Dance Central actually receives pretty decent reviews so if I were to get a Kinect game, that'd be the one I get, nobody has anything bad to say about it really.
I can't be much more help than that, but here's a list of all currently released Kinect games thus far.
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