I\'ve watched an already well known video where Bret Victor, former Apple UI designer shows amazing demos with immediate updates of running code after changing literally one
The IPython Notebook is step in that direction. Although, it is more geared towards Interactive Exploratory Analysis for scientific problem, I find it to be very interactive and fun to develop with.
I also just discovered Live Code. After some experimentation I found, it does not encompass all the principles of Bret Victor philosophy. It has a straight forward syntax but the UI doesn't make for interactive development. They still have some way to go.
Then there is also R. Since the new developments with Shiny and knitr some interesting innovations are taking place which is line with Bret's philosophy.