There’s a guy at Carnegie Mellon named Johnny Chung Lee, who’s been doing experiments with the Wii remote, then putting his results up on YouTube.
The ones I’ve seen take advantage of the fact that the Wii remote is an IR camera, not just a standard IR-output remote, which flips the whole method of interactivity with the Wii on its head. As a result, he’s turned it into a low-cost interactive whiteboard, a Minority Report-style multi-touch finger-tracking system, and coolest of all, a VR head-tracking system:
The last one I definitely want to try sometime (he’s included all the necessary software with his demos), and would make for some awesome games if developers could get clued in and start taking advantage of this. When “Wii as lightsaber” is the coolest idea anybody’s proposed for the system, it’s clear that they need input from clever guys like this. (And Nintendo desperately needs to hire this guy as soon as he’s available).