I've been let down by my fair share of remote-control flying toys in the past, but the Avatar-chic, iPhone-controlled, Linux-based, Wi-Fi-ready, augmented reality-enhanced, dual video camera-wielding Parrot... well, you get the picture.
The Parrot is just about the coolest remote-control gadget I've ever seen. Tilting your iPhone ever so slightly, you control the mechanical bird in an augmented reality based game of airborne warfare. The Parrot has an on-board Linux computer that manages delicate accelerometers to keep your game flying. Two video cameras - one on the nose and one on the bottom - transmit video back to your iPhone controller which is then overlaid with the targets you're meant to destroy.
The Parrot is Wi-Fi ready, so you can play in a networked game with friends, and a removable bumper makes sure your drone stays safe if the game gets a little too real.
No cost or availability just yet, but keep your eyes peeled for this seriously souped up toy in 2010.