I can imagine several possibilities. Maybe something multiplayer using real terrain, like a scavenger hunt--you could mark objects and leave clues with this sort of tool. In fact, any sort of game that involves actually moving around could benefit from this, and I think games like that could be very interesting.
Another thought is board/card games (like Magic: The Gathering) could benefit from this. You could get nice little animation when you play your cards--not terribly useful, but could be very amusing. You could also have wizard chess like Harry Potter (sort of).
Really, the big trick is being able to integrate with the outside world. So this won't be great for entirely virtual games, but could be used as a "hook" into physical games.
Another thought is board/card games (like Magic: The Gathering) could benefit from this. You could get nice little animation when you play your cards--not terribly useful, but could be very amusing. You could also have wizard chess like Harry Potter (sort of).
Really, the big trick is being able to integrate with the outside world. So this won't be great for entirely virtual games, but could be used as a "hook" into physical games.