An FCC filing has confirmed that Cisco is developing a Wi-Fi version of its Flip Video cameras. The M3260 has been tested using 802.11n Wi-Fi along with the HDMI and USB connectors. The purpose of the wireless is probably to share video on a local network and maybe even upload video directly to YouTube or Facebook.
We don’t know what the camera will be like outside of the Wi-Fi, or when it will ship. It should be $200 or under to fit into the marketplace.