At the ITP (Interactive Telecommunications Program) Spring Show there were plenty of lovely girl-gadgets on display. This capelet, titled Soft Electric by Grace Kim was among them. From Grace's site:

"The capelet was knitted and felted by hand. It is embroidered with conductive thread. The thread carries electric current to LEDs that are beaded into the embroidery, making the electronic current part of the garment's adornment. The LED beads flicker, acting like a sequin in the light."

There are links to video of the garment in action at the project site. I saw the piece on display and can attest to the lovely craft-conscious approach taken by the creator. So don't think blinkie lights, think blendie lights which sparkle prettily like little jewels.