Actually, this idea has some limitations. When a user visits a webpage, their eye will scan the page very rapidly to see what is available and then decide where they want to click.
It could get extremely annoying to have the cursor bouncing all over the screen (if it could even keep up with the rapid eye movements) when all a person is trying to do is see what their options are. It would be especially difficult when trying to highlight, drag & drop, etc.
Overall, it's a good idea, but I see some challenges.