Some folks at Brown University and the Technical University of Berlin have developed an interactive sketch recognition program that looks like it can even identify things that I draw. It can apparently recognize over 250 different categories of objects as you draw them. Given that most of our drawings don't really look like the real objects at all, this is pretty impressive. The video below shows just how well the program works. They have also made a free app for iPhones and iPads.
The original paper is here.