Interactive Rave Lights

Got this idea while watching the visualizations on my computer. Ravers have been twirling glowsticks for some time, but I haven't heard of any type of wearable interactive lights. The idea is to recreate the visualizations that you see in an MP3 player on the dance floor, using devices that pulse to the beat, but that also react to other devices in proximity. For example, a necklace would probably work best because, worn outside of the clothes, it can "see" 360 degrees around you. The devices might pulse at a specific frequencies (different devices at different frequencies?) and talk to other local devices using IR. A specific device might be designated the "center" and devices around it would pulse slightly later in time, at a lower brightness. This might continue outward for some number of hops. The effect, if seen from above, would look like a wave spreading outward. A given device might respond to different frequencies in different colors, and then you could have overlapping waves of color. Different algorithms would produce different effects. Would be cool to see this in action and a simple program could probably model what it would look like on a computer screen.