Expanding even further on my recent articles about understanding capabilities, Mac Rumors reports that Apple is expected to launch devices with built-in projectors later this year. The projectors would allow the iPhone and possibly the iPod touch to directly project video output onto an external surface.
To better understand the impact of this capability on consumer devices, take a look at this video of Pattie Maes' talk at the TED conference this year. In it she demos a wearable device with a projector that paves the way for rich interaction with our environment.