You could focus it -- not hard. I'm not sure how powerful it would be, definitely blinding if it already hurts your eyes. Take it apart and experiment with different optics and things like that till you get it focused. In addition, you could also try running more power though the LED to make it even stronger, but you run the risk of destroying it. Also, I don't know the MCD of that LED, but you might be able to find a more powerful one cheaper than a mouse. Experiment!
As far as other household items with lasers, not many that I can think of that are able much less designed to be as powerful as you want. Try using mirrors and lenses to focus a halogen bulb! Some spot lights that use these can easily blind you with a beam thats about 20 cm (I guess, not good with metric). Try focusing heat lamps that are for lizards. They put some serious heat out as is -- not to mention if it was focused into a beam! Mod a strobe light (one of those blindingly bright ones) to stay on, focus it, and you've got some bright light. Like I said, experiment!