panasonic announced their new SDR-S150 camcorder today, one of the first camcorders to allow for storage of over 3 hours of footage by using a new 4GB SDHC memory card (in the lowest quality mode, of course). This solid-state memory allowed them to keep the complete camera down to a svelte 2″(w) x 4″(h) x 3.25″(d). The camera also uses a 3-CCD element which should help produce much better image quality than the cheap single-CCD cameras out there.
I imagine battery life will be pretty good on these without any significant moving parts.