GameOfLife.cs

using System;
using System.Collections.Generic;
using System.Linq;
using System.Threading;

namespace CodeRetreat2013
{
	public class LifeGame
	{
		private HashSet<Tuple<int,int>> alive;

		private LifeGame(params Tuple<int, int>[] alive)
		{
			this.alive = new HashSet<Tuple<int, int>>(alive);
		}

		private LifeGame MakeStep()
		{
			alive = new HashSet<Tuple<int, int>>(
				alive.Concat(alive.SelectMany(Neighbours)).Where(ShouldBeAlive));
			return this;
		}

		private bool ShouldBeAlive(Tuple<int, int> xy)
		{
			return WillAliveWithThatNeighboursCount(xy, 
				Neighbours(xy).Where(neighb => !xy.Equals(neighb)).Count(alive.Contains));
		}

		private bool WillAliveWithThatNeighboursCount(Tuple<int, int> xy, int aliveCount)
		{
			return aliveCount == 3 || aliveCount == 2 && alive.Contains(xy);
		}

		private IEnumerable<Tuple<int,int>> Neighbours(Tuple<int, int> xy)
		{
			return Enumerable.Range(xy.Item1 - 1, 3).SelectMany(
				x => Enumerable.Range(xy.Item2 - 1, 3).Select(y => Tuple.Create(x, y))
					.Where(c => !c.Equals(xy)));
		}

		public string ToString(int minX, int width, int minY, int height)
		{
			return string.Join(
				Environment.NewLine, 
				Enumerable.Range(minY, height).Select(y => LineToString(y, minX, width)));
		}

		private static readonly IDictionary<bool, char> cellSymbols =
			new Dictionary<bool, char> { { false, ' ' }, { true, '#' } };

		public string LineToString(int y, int minX, int width)
		{
			return new string(
				Enumerable.Range(minX, width).Select(x => Tuple.Create(x, y))
					.Select(cell => cellSymbols[alive.Contains(cell)]).ToArray());
		}

		private static readonly IDictionary<bool, Action<LifeGame>> nextStep = 
			new Dictionary<bool, Action<LifeGame>> 
			{ { true, g => { } }, { false, VisualizeGame } };
		
		public static void VisualizeGame(LifeGame game)
		{
			Console.Clear();
			Console.WriteLine(game.MakeStep().ToString(-10, 20, -10, 20));
			WaitAndContinue(nextStep[Console.KeyAvailable], game);

		}

		private static void WaitAndContinue(Action<LifeGame> continuation, LifeGame game)
		{
			Thread.Sleep(100);
			continuation(game);
		}

		public static void Main()
		{
			Console.CursorVisible = false;
			VisualizeGame(new LifeGame(Tuple.Create(1, 0), Tuple.Create(2, 0), 
				Tuple.Create(3, 0), Tuple.Create(1, 1), Tuple.Create(2, 2)));
		}
	}
}

По мотивам прошедшего https://vk.com/code_retreat
Game of life с ограничениями:

1. Нет циклов
2. Нет условных операторов
3. Не более трех строк на метод
4. Нет переменных

Стал ли код читабельней?

Переходите на Хаскелл, не мучайте C# :)