Working at Palm on the first Bluetooth implementation for PDAs, I was constantly thinking about applications that could take advantage of our new technology. One of the first things that came to mind was taking Assassin to the next level. Assassin is a game where a group of people draw names from the common pool of all names in the group. The name you draw is your target, and your job is to find the person out in the world and "assassinate" them, aka sneak up to them and tag them. They give you the name they are carrying, and the game continues until there is only one person left.
I always thought it would be fun to use Bluetooth in the seek portion of the Assassin game. Given Bluetooth's 30 foot range, it was like a short range tracking device. You could also use Bluetooth as a virtual tag, but at 30 feet it would take the social aspect out of the game. Virtual tagging at 30 ft would make Assassin a sniper game, and we all know that games with nothing but snipers suck!
After you make the virtual kill, you could use BT to transfer the next target from the recently deceased player. Would be a great way to extend your social graph, as you could in essence get an updated business card with full social graph info from all the players in each game. Address Book integration ;-)
This idea assumed your device was in active mode all the time (kiss your batteries goodbye), but given today's WiFi, BT, GPS, etc., I'm pretty sure this idea and associated games have been taken to their logical conclusion?
Idea from July 29, 2002
Update Feb 3, 2009: Take a look @ YouCatch from JOYity for the Android platform! Idea realized!!