This reminds me of another cool toy camera, the PXL-2000 - which recorded digital video onto a compact audio cassette tape.
Speaking of constraints, the camera apparently had a problem with its RF filter, which resulted in a lot of static when you were recording to the audio tape. Someone figured out you could hack in your own RCA video out connector, so most of the films shot with the camera have been modded to get a better picture. Here's a link on how to mod one: http://users.speakeasy.net/~joem/Pxl/guide.html
Incidentally he now works as a film editor.