In one step a company named Parrot has redefined what “radio control” means. Instead of joysticks and a dedicated radio transmitter and receiver, now you use an iPhone connected via WiFi to control the toy as seen in this video:

The onboard camera lets you see what the drone sees and pilot it as though you are sitting in the toy’s cockpit.

Since you have an iPhone in the loop, you can also get augmented reality on the screen as demonstrated here:

One nice part about this aircraft is the auto-pilot. It has ultrasound sensors that detect height off the ground along with a camera facing downward that can estimate speed. Here is the camera’s view as it hovers over a desk:

It should in theory be possible for this device to hover at a single point in space completely on its own.

More info: Parrot AR Drone

[[[Jump to previous invention - the $200 tablet PC]]]