"while touchscreen devices are more ubiquitous than ever, really only allow users to draw in two dimensions. beyond is a concept that allows users to sketch in three dimensions of an interactive surface developed by jinha lee and hiroshi ishii of the MIT media lab. the system utilizes a collapsible input
device for direct 3d manipulation. the small pen-like tool collapses into the digital world when pressed against the screen, giving the illusion that it is inside the virtual space. by moving the pen around the screen and adjusting its height, users can draw objects in three dimensions. by adding an interactive glove element, the system can even be used to draw cubes, cylinders and other three-dimensional objects. while the concept is quite novel, it could become an indispensable tool for designers sketching digitally. "

Pretty awesome - and you can develop for it using WPF/Silverlight, Java or C++ finally a bit of hardware that can compete with Microsoft Surface allowing designers and developers to use the tool that they are used too.