Tangible interface - Project guidance

I didn't see where the accelerometer would come in. To me it looked like a mouse to detect translation, possible a second mouse (differentially) to detect rotation, and four digital or analogue sensors to detect tilt. (I'm not clear whether tilt sensing is proportional or not.) For the display I'd see a small USB display, and a small form factor USB hub to connect all this lot to a single USB port. I'd imagine the USB was connected to an application which interpreted all these sensor inputs and drove the display. It would be possible to do all this without any clever electronics within the device and without involving Arduino.