"What if a sign did not simply tout new movies, sodas, and celebrity babies in one-way feeds, but instead revealed something unique about the building, its occupants, or its environment? What if the building could respond, in real time, to the movement of people, the weather, or the whims of bystanders or behind-the-scenes artists? Digital designers and architects have begun working together to move beyond the facade and give buildings a living skin."
Posted by Ed Cotton
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You might want to check out the Interactive Architecture blog which goes well beyond "breathing" facades, and which has been (or was) covering this sort of thing for a few years. You might also find Philips' latest efforts in Second Life relevant, since buildings' with "living skin" was the focus of some recent online colloboration.