In a rather strange, although not at all surprising move, CafePress has announced it's new partnership with Microsoft to bring your very own Xbox Live Avatar to life on various gear. CafePress has always been an online retailer centered around user-created content, so it's very appropriate.
It's as easy as going to xbox.cafepress.com, entering your Gamer Tag and selecting one of ten poses you want to appear on whatever various items you want. That is, if you actually want anything. Who out there cares enough about their avatar to do this? Sure, my Master Chief avatar will always look okay, but what if you try to get your avatar to resemble yourself and one day you decide to change up your avatar? All you'll have is a reminder of what your avatar used to look like.
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Contest:
8:00 PM on 12.06.2011 | 
I'll just screencap the imagine and iron it on a 5 dollar shirt from Wal Mart and it will likely be the same quality, given the one shirt I ordered from CP started cracking in a month of regular wear and wash.
So far, the only company to get the "You're in-game representation as a physical thing!" right is the guys who did the custom WoW figures.
For example my character has a tall tophat on. As such when I try to put him on a cup, his hat is cutoff about halfway and I am seeing no option to adjust the position of my avatar on the cup.
It can be a cool luxury item or christmas gift I think, but I doubt I would ever do this myself.