I have four feature reguests that I think would really improve this demo!
ALT key - Would let you control your grabbed object on an XY plane on the current Z position. This would be an easier way to control objects in depth, rather than using SHIFT and CTRL, because you could measure the current height of another object and then know that when you move around you will keep that Z height locked.
SPACEBAR - toggle between mouselook and grab pointer. Middle mouse button is a bit tedious. Default would be mouselook.
Any key close to WASD - Lets you activate the grab pointer when held down, in contrast to SPACEBAR. this would only work when you are in mouselook mode.
When in mouselook mode you can still grab things with the middle pixel of the screen, you could add a little crosshair, like a little ring or something. ALT key would still work the same as in pointer mode, and objects move as you move the camera.
This would make the demo much more intuitive, and I would love to see the code for this, I haven’t figured out yet how to make these changes, I am still a newbie on python
It is just two point lights and one spotlight. Press ALT+H to unhide the lamps. The shading is set to GLSL, check Render > Shading in the Properties panel.