Via Mike Kuniavsky, here's an interesting toy which allows you to interactively project drawings in real-time. I know the intended audience is for kids, but this is a very cool way to make a big drawing in real-time when you don't have a whiteboard available. Just project on the wall.
This very much reminds me of a play of a Neil Gaiman book called "The Wolves in the Walls" which my wife did some digital compositing and projection work on where an After Effects animation was composited and projected onto the stage using Watchout software. The effect was to enable the actress to "draw" on the stage in real-time. Depending on the artistic skills of the actress, this toy would have been a simple replacement for this one effect. Scientific Progress does not always go "Boink" to mis-quote Calvin and Hobbes.