Here is an interesting use of LIDAR done by the folks at CadMaps
It uses a web-service to retrieve LIDAR data as a profile image (Webservice is LIDARServer a product from QCoherent). The images were then made into a video and then displayed in the SilverLight version of Bing Maps. What is very cool is the way in which they managed to get the video to sync with the path of the video in Bing Maps.
Implementation information: http://www.cadmaps.com/gisblog/?p=387
Bing Maps mashup: http://etl.onterrasys.com/OnTerra_MACCorridor/