There were some motion cards in the 90's, but they were at the time pretty expensive, like $5-10 a card. And they weren't much better than sportflics.
Something digital like you're thinking could be interesting, I can't think it would be hard making a phone size gadget that only played a handful of included videos.
But considering how my cell phone has gone, I'm developing* an aversion to expensive and yet very ephemeral technology. It's maybe 2-3 years old, and the un-changeable battery is on its way out. I don't expect it will make it to as much as 5 years, which is pathetic for something that cost 300+.
Then there's the recent loss of data by Myspace, 12 years of photos and music etc gone because they didn't back up when migrating to new servers.
It's a nice idea, but probably won't really be ready for prime time for another couple decades.
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