I know someone who took a single wheel bike, the kind you ride in side of. Arduino ran lights around the wheel rim in changing patterns. The wheel is big, like 6 feet diameter. Very impressive at night.
But I think if Arduino does “useful work”, eg home automation, a commercial product may be out there already.
Flip side, current products may be poor quality. Imho. Once somebody owns a patent, makes some money selling it. Quality drops imho.
WS2812 LED strings can be individually programmed. The effects can be quite remarkable.