Low resolution doesn’t mean that you cannot make something beautiful and eye catching. Gilad have designed pretty interesting light box, where he used 8×8 RGB matrix to generate foggy animations.
His setup uses Arduino (Rainbowduino) board which drives LED matrix display. To get some interactivity there is a microphone attached. Sound effects the animation which is based on his custom developed particle system library. It is fun to watch the thing in action.