Buckwald says that the new software has been a work in progress for over a year and that it’s needed to further improve latency and the overall experience. As he explains it, the existing tracking software on the market lacks the necessary logic to know how to determine what action to take when a hand is positioned in a certain way where fingers overlay each other. Soon, it will have the necessary “smarts” to observe and follow all the joints in your hands to make the required movements.
Specifically, Leap Motion will soon be able to better understand finger-to-finger (pinch) movements, when a user is grasping an object or interacting with it.

Leap Motion is a really exciting technology, and I've enjoyed playing with it. The software for detecting finger motion really needs some work though, so it's good to hear that they're hard at work on it. The potential for integrating gestures into existing desktop software is definitely there, and worth watching.