Youtube link for mobile viewing
Imagine a small projector attached to your Android device, and you can use your hand and touch the projected image to navigate the UI through a Kinect attached to a PC. There's no need to just imagine it any longer, as the Android Kinect Projector Interface project is doing it now. The developers have built a system where a projector is attached to a Galaxy Nexus, and a Kinect attached to a PC running Simple-Kinect-Touch 2.0 communicates motion to control the running system. Using a custom AOSP ROM and TUIO for Android "touches" on the projected screen work just like touches on the physical screen would. Badass tech indeed.
Of course this is all unofficial and really beta alpha for now, but the idea is solid and the video shows us that it's feasible. Maybe it's something we will see on the shelves one day.
Source: Recursive Penguin via Phandroid.
More: TUIO for Android; TUIO 2.0 Protocol Specifications