I saw a camera the other day that is just what I have been looking for and then some. Priced at about $50 more than I want to spend, and not a shipping product yet, makes me have to put this off. But I wanted to tell you about it.
It is called the Digital Hero 3 by a company called GoPro. It is a 3 mega pixel camera that attaches to the wrist. It folds down out of the way when you are not using it and then folds up to take pictures. It is waterproof down to 100 feet. It takes 30 fps video as well.
There is a page with some videos and photos taken with the camera.
I am primarily interested in a camera I can take running with me. Not for races mind you. But I run in some interesting places and streets and often think it would be cool to have a camera with me. It would not be something I would take on every run, but the occasional run would be fun to have a camera on board. Also it would be a help to take pictures of the cars as they drive over me and someone can identify the vehicle when they spatula me off the ground.