Physical Computing in Design - Examples

(Above video contains brief nudity at the end as part of a Fashion show so here's your NSFW warning.)
Last week a second year PDT student asked for example of Arduino and physical computing being used in "real" design projects.
Sketching in hardware an article on Core77 explains how it is changing design.
IDEO labs blog shows some of the stuff that top design consultancy IDEO have been playing with.
Nike + Fuelband - This could have been prototyped and the user interaction developed using Arduino and a PDT student could make that working prototype with arduino.
Prototype Tranformer dresses - above.
A working prototype sonar glove, to help the blind navigate instead of a walking stick.
An experimental prototype interface for CAD modelling.
Add touch screen to your prototype products.
Ride the current wave of wearable electronics.
Prototype the house of the future - this one opens curtains.
For more, look here - Partucularly the "top 40 arduino projects" post, than that hit up google for words like "arduino" and "product design" there are a lot out there, these are just a few that tickled my fancy .