Fun, but since you can't see where you're touching, application is limited. Now all we need is cheap, small picoprojectors that you can use to project your desktop on the underside of that tracking paper. Voila, cardboard Surface machine.
The trick is getting both the webcam and the projector in the center. Maybe you can tape a short throw projector to the side. The camera would also probably need to grab infrared images so that it doesn't get confused by the projected desktop. on the underside of the paper, and can still see your fingers.