Ronja (Reasonable Optical Near Joint Access)
ronja.twibright.com
ronja.twibright.com
There's a modern day equivalent, with up to 10Gbps capability using infrared - http://koruza.net/
Off to find out if someone is commercialising this yet by offering DIY kits, etc. ...
One interesting use of free space optics is working around legal issues. At least in Australia the Telco act (via reference to the Radiocommunications Act) only goes up to 420THz which is red colour, so free space optics can be unregulated.
I'll go out on a limb and say 'a quirky historical device'.
The range is tricky, especially in fog, but mountain to mountain links (single channel audio) have gone 173 miles.
I was mainly referring to the hobby builds being able to do better.