Yes, capturing images of the mouse moving around on a graphics terminal.
Yes, first used by Sadri Levin in 1968 to produce the painting “Self-Portrait as One Dot” on his computerized drawing calculator for his MFA thesis at Massachusetts Institute of Technology. Called AARON (‘Paint’) for more than 25 years before changing it to AARON CANDY in 2005, then it been running Painting Machine software to paint abstract pictures with its brushes and oil paints which are applied directly onto canvases without printing.