I first tried the Linux Mint Scratch first, which appears to be the v. 1.4 Smalltalk version you mention. I then tried the cloud version because it had more features and because my granddaughter could access it from home as I improved it. I never got far enough to consider physical interfaces. However, I doubt if many primary school teachers do much more than try to stay one step ahead of the kids.
I have to admit I have seen a few things that made me think, like sprites for everything. I still think in terms of old school techniques like colour changing lines to show forward motion, bit-blitting and page flipping. I can see some experiments coming along.