There are people who have done this...
We here in California have a silly "stupidity tax" department (its really called the Lottery). They have ALL sorts of machines that are VERY accurate, produce paper trails, and seem to get the job done. Why they can't use that technology in voting amazes me to no end. For some reason they chose the ATM people to do this job, and then used windows based machines to do the actual work. Oh, well.
We used to have nice punch card based boxes, but there were some idiots in Florida that mucked THAT up. I understand that it is EXTREMELY difficult to produce hanging chad unless you really mis handle the card (fold, staple, spindle, or mutilate). It seems that all it takes is one instance to foul things up.
Personally, I feel that having the counting function the same box as the voting function is a conflict of interest (security). The ideal solution would be to separate the two functions, but it seems that nobody wants to do that.
Life goes on, candidates are elected, taxes increase (*SIGH*).