http://www.engadget.com/tag/flipvideo
The Flip Video may be pocket-sized and ludicrously easy to use, but it's got nothing on Exemode's SQ28m Pocket Digital Camera when it comes to charm. This thing is small enough to fit on a keychain and, though the footage is recorded at a mere 320 x 240 and 8fps without audio, the inclusion of a number of color filters make results look more "retro 8mm" than "cheap digital" (see for yourself below). It starts shipping next week at ¥5,985 ($65), a bit too far above impulse-buy territory for us, but we're certainly more into this than the company's previous efforts.

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Exemode SQ28m Pocket Digital Camera fits on a keychain, takes charmgingly low-quality footage (video)