(YouTube Link)
The Obscura CueLight Pool Table, currently set up in Esquire magazine's ultimate bachelor pad, creates stunning visual effects as pool balls move around the table. Motion sensors detect anything on or near the surface of the table and reveal a shimmering image through an overhead projector. It was created by the San Francisco-based light effects company Obscura Digital and will probably cost about $125,000 per unit when and if it is marketed.
Company Website via Gizmodo
As for an LCD, I wouldn't want to masse on that. The whole point of doing it this way is to preserve the feel and play of the table.
And and yes it is an overpriced pointless luxury item... the 125,000 probably doesn't even include the table to play on.
Could probably do this for way less with some sort of open source software, a laptop, a video camera, and a much cheaper projector.