That's why I found Osmo to be so interesting. Osmo is designed to utilize the high-tech devices we've grown accustomed to (various flavors of iPad, specifically) and incorporate physical interaction that helps to reinforce spatial orientation, hand-eye coordination and manual dexterity, as well as encouraging and inspiring creative problem solving.
As you can see in the picture above, the Osmo system includes a mirror that clips onto the iPad and points the camera down into a "play area" in which kids can interact with the games. Notice how even the pen and the child's hands appear (as line drawings) on the playfield of the iPad above. You can see the digital interactive elements (in purple) as they are falling from the top of the screen and interacting with the drawings on the paper. This game is called Newton and it allows children to use pen and paper and even physical items, such as toys, to interact with the game on screen, bouncing balls to hit targets. This game will be available when Osmo is launched.