I had a detailed introduction to this, but then my computer froze.
Here is a honest use of motion sensing technology, not the video game bull crap that is about all anyone has tried to use it much for.
http://www.pranavmistry.com/projects/sixthsense/#VIDEOS
Pranav apparently first thought this up when he was wondering why a mouse is only 2d using only 2 buttons, he basically made a quick hack-job making a device that worked as a sort of digital hand for computer work, then he thought up a pin design that works as both a 3d mouse and a tablet free lining tool, then he started to get into what this link shows.
edit: hm, yeah he pretty much disappeared after 2009, not sure if this is still in the works :/ Should I looked more before I posted.

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