This is such a compelling demo because it's based on common technology available to millions of people. Doing it with Flash and a webcam was a stroke of genius.<p>When stuff is in a lab it's less compelling. I saw one of the Microsoft multi-touch tables recently. My first thought? "Oh, it's just a giant iPhone" Apple's made multi-touch everyday, that was the hard problem.
According to my brother (and one of the commenters), this type of thing was already done with a Yu Gi Oh game. I feel like I'm behind the times here -- are there other examples of this effect in the wild? This is the coolest thing I've seen in a while :)
I actually saw a demo of this at a conference last week. At a cocktail hour afterward a guy had this working with his cellphone and his business card.<p>They're using it for some really cool alternate reality interactive events.
Kills my browser (Chrome and Firefox), which seems to happen often now that I upgraded to Flash 10.<p>Note to self: Never upgrade to the next version of Flash plugin before it has been available for a while.