One area where LEGO minifigures really work well is in the world of gaming. If you've ever rolled a D20 in a dark and sketchy basement with a few friends, you are familiar with the various avatars we've all used to help our imaginations take form. Although role-playing games immediately come to mind, another niche where minifigs seem to fit are custom chess pieces.
Classic Castle is currently running a monthly contest through April focused on chess. Aaron Dayman's entry uses minifigures from the Forestmen line to fill out one side of the board. I don't know if the bases would fit a standard chess square, but I love the design. Now that LEGO has launched their games division, it would be fantastic to see a series of chess sets in various themes.
I'm looking forward to seeing more creations coming out of this contest!
(Picture from Aaron Dayman's Flickr stream; originally found on The Brothers Brick)