It's always fun to see what use that someone comes up with for Blender. As to real-time puppetry we've had game-pad control and now in this caseThomas Eldredge aka teldredge has been experimenting using Wii remotes to control a real time puppet.
"A little while ago I created a 'marionette' animation test using WiiMotes over OSC to control a 'ragdoll' type puppet. I made a short video demonstrating it."
Links to the setup files (only for the very brave)
Plus a little jingle advertisement for Blender I made for fun.