
Anyway, a few thoughts as I've been involved with various "technologising" of cars.
GPS is a good start, there are loads of tiny & cheap GPS modules out there that have SPI interfaces. I would take a close look at OziExplorer CE as it has a couple of good points:
- It's available for ARM powered devices already
- It's a small independent project, with documented API's
- You can scan in & calibrate any image and use it as a map
- It has provision for things like auto-pilot outputs which extends potential uses in the Rpi community to UAV's, robots, etc.
Diagnostics via OBD / CANBus is another good idea, you can get a lot of information through that these days and manufacturers have to provide at least the basics by default.
Taking things one step further you could use the Pi to control the vehicle - an open-source replacement for the various dedicated control systems found in cars these days. Once you can talk on the CANbus you are getting close to being able to pretend to be part of the car. Also worth looking at the open-source DIY fuel injection project Megasquirt, it's got a huge user base and is used to run almost any spark-ignition engine.
I'm actually hoping to add suitable drivers to my Pi to read the live data from the Megasquirt and control stepper motors mounted in gauges to give me a digital dashboard with old/original instruments.
As for things like touch-screens / cameras, I would look closely at what's on eBay before deciding to reinvent the wheel - I run a cheap Eonon car stereo from eBay but it has 7" touch-screen TFT, 4x50W amp, 2 video-outs, 3 video-ins, GPS, USB/SD, DVD/MP3/TV/AM/FM/DAB etc. etc. so I find it hard to see any way you can improve on that sort of stuff given the prices coming out of china. I could well imagine plugging the Pi into it to provide extra functionality but I can't see any way of packaging the Pi in custom hardware for anywhere near a sensible price.
One thing that would be cool is a configurable camera / DVR, for long journeys having something that takes a picture every few minutes would make an interesting time-lapse movie, or there's the popular looping "accident-cam" DVR functionality (but again, these are £25 on eBay ready to go).