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Are you concerned that in a very high dimensional space you'd need an absurd number of points in order to produce a meaninful KDE, since otherwise the points will be too sparse? If so I think I'm with you... you'll probably just end up with a very large number of small, weak clusters.

Although I wonder if you can't account for that by simply increasing the kernel bandwidth. Perhaps not. Perhaps this is why mean-shift seems to be mostly used for computer vision and image processing, where (I guess?) the number of dimensions is low.

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