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Mice have come a long way in the last few years with the invention of the optical mouse e.t.c. The optical mouse still has several problems.
1) They are still surface dependent - will not work on glass e.t.c.
2) Cordless optical mice drain batteries very fast, especially when playing games. (Solar panels add around 25% more life)
My idea is to use an accelerometer to measure the changes in direction, and hence the position of the cursor on the screen. I believe that the accelerometer would be far more efficient than optical mice, and it would not be surface-dependent. A similar one used in radio controlled helicopters could be used.
With the chance that 3d monitors may be appearing in the future, an additional accelerometer could be introduced to allow positioning of the cursor in three space.
The only downside I could see of using an accelerometer is that you couldn't used it in a car or plane and that the device would need to be very sensitive.