A classroom benefits greatly by employing computer projection to exhibit pre-prepared material that can be manipulated electronically but the standard classroom using chalk and a blackboard also is extremely useful to permit students and instructors to write and draw material that occurs spontaneously.It is possible to comfortably combine the best of the two by projecting the electronic material on the rear of a large ground glass (or plastic) sheet which is amenable to overwriting with standard chalk with spontaneous comments. The ground glass makes a good projection surface and the chalk can be wiped off in the standard blackboard manner
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I've actually used a much similar idea in the classes I've taught with Indiana State University's Upward Bound program. It's called a SmartBoard.
http://www.smarttech.com/
Basically, it's a 3'x4' touch-sensitive pad that you aim a projection camera at. The entire SmartBoard becomes covered with the image, and you can use a felt-tipped dummy marker to draw on it electronically. It's not perfectly accurate, but quite neat, especially when you get your students to start coloring on it with you.
Yes, a few class periods did end with the last 15 minutes just playing with the SmartBoard.
Also the Bookworm game from Popcap games is a really fun one when you can just touch the letters with your fingers to make things happen.
http://www.popcap.com/launchpage.php?theGame=bookworm&src=big8
So yes, it's a great idea. The only current problem is the novelty of the technology makes it exceedingly expensive. But my high school has gotten some grant money with which to purchase one. It's so cool!