Pure Digital, makers of the mega-popular Flip camcorders, has announced the the MinoHD, essentially the Flip Mino capable of shooting 720p video. Its internal 4GB of will hold up to an hour of video.
Part of the Flip's appeal — besides its capable video quality and its simple interface — was its oh-why-the-hell-not price. The MinoHD sells for $230, putting it firmly in the realm of other flash memory- and tape-based camcorders with greater features (including such luxuries as optical zoom).
Then again, I thought the original Flip was a silly idea, but I underestimated the appeal of simplicity. Still, I wouldn't be surprised to see the 720p recording capability folded down into the rest of the product line by this time next year.
(As an aside, 720p really seems like a nice resolution for things for the next couple of years. 1080p files are quite a bit larger and useless on the internet; 720p is still too high resolution for the likes of YouTube, but it won't be for long.)