The first time I was inspired by a physical computing project and/or code was when a friend of mine introduced to a website called Made With Code. Made With Code is a really wonderful initiative by Google to promote coding amongst girls. They partnered with Miral Kotb, founder of iLuminate, to mentor the girls at Made With Code, encouraging them to think outside the box and introducing her own company which consists of a highly successful dance troupe that competed on America's Got Talent using coding to program lights on their costumes.
As seen in the videos, the whole sequence that the troupe performs is synced so very well together and the lighting responds to the movement, sounds and timing of the music very well. The sequence is coded and remote controlled at the back end by Miral and her crew of talented coders. My guess is that I know of one way this could be done. Listing out the objectives to make it clear these are RGB LEDs, sound sensor and a micro controller such as an Arduino. Making use of IF statements and conditionals, the costumes can be controlled and lit up all depending on the kind of sequence the music dictates.
It is an intense but great idea and project, one that definitely makes me want to explore code and it's impact on regular objects more.