This is just so cool! First look at the video, then think ‘wow this guy makes it look so awesome’, then download the prototype and find out it really is so awesome, and then start to think of all the cool stuff you yourself should do with such simple technology.
Apparently the full version, Crayon Physics Deluxe, will use the Farseer engine, which works with XNA and Silverlight. I really need to check that out because there are so many ideas I need to try out right now. Airhockey on the TouchTable being the first one.