Jesse, just responding to your Blast project, this is a great idea and I would love to see that elaborated more.
The idea is clear and if you put more work into the industrial design and be able to target specific audiences with this device, you will have a winner.
I work freelance for Warner Brothers Studios and we have been doing R&D into quite similar concepts to enhance the home experience of their licensed toys. And presentation augmenters have a lot of impact, especially when programmable. I once did a library presentation about elastomers and simply adding $5 RFID tags to objects that link to a visual infotainment display makes the entire experience so much better.