The new technology these cameras are based on is called Micro Four Thirds. It works by eliminating the complicated mirror system inside today's cameras. These mirrors are used to direct the image to the peephole. Someone got clever and added a really tiny LCD inside this peephole which now acts as a replacement for the real peephole. The benefit is professional digital cameras can now be much thinner.
See David Pogue's review of one such camera, the Panasonic G1.
Monday, November 24, 2008
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Here is a more recent, similar story at NTY entitled The Quest to Shrink the SLR
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