Do you have any idea what needs to be changed in order to program such a commodity? I have very little knowledge I`m afraid. I wouldn`t be able to program such code. 
input.device handles that mostly
you could replace it, or patch it
im not really into hacks, so i couldnt be bothered
But I`m sure even if it comes out to be a very hacky program, it wouldn`t cause any crashes. After all we all see such moving pointer in some games. (i think i`ve seen it last on WarCraft3 and maybe Diablo2) and even some Amiga games.
if you see an automatic moving pointer under intuition games - there could be an OS legal way to reposition it
i know you can find its location, but perhaps later ill check the RKRM's to see if you can write its location