I just saw Tuttuki Bako today on a website. It's quite innovative I think and serves to remind just how limited we can be in the ways we think about interactivity.
This new interactive toy from japan involves sticking your finger in a hole on the side of the box to interact with a virtual environment. Bandai’s new Tuttuki Bako handheld interactive plaything requires you to twiddle your finger around inside the orifice to play with a variety of virtual characters on an LCD screen on the front of the device. There are six play modes ranging from pushing around a tiny little person, to ticking someone’s nose, to petting a pint-size panda bear.