[This site is no longer active]
I came across this "fun" site (Design My Room) that allows the user to set up and furnish rooms à la "Designing Spaces". You are given a huge selection of furnishings and furniture, as well as colours, window treatments and lots of doodads and knickknacks.
Be an interior designer, or recreate your parents' living room. Students can be creative and imagine a character's house or use this as a jumping off point for a short story.
While you need an account to save your creations for re-editing later, you can build and design without an ID. Keeping a record of your work can be done by simply taking a screen shot.
This would be a fun way to work on vocabulary, talk about colours and textures, and even look at "art and design" issues for older kids. Have fun!