Modu, a handset designer/manufacturer based in Israel, has just shown off an Android-based prototype. Modu is known for what they call modu jackets. Basically, you have a central module, and it will plug in to a bunch of different systems, allowing you a digital photo frame or an armband MP3 player depending on your need. This Android module is tiny, and it would be really hard to type on that screen. Maybe they are looking to use it as a base for a bunch of modu jackets? You could have a candy-bar phone one day and tablet another. Who knows?
This interesting device lacks 3G, using only WiFi for data. The device includes an FM radio, a stylus (resistive screen?), 3.5 mm headphone jack, and a microSD card slot. Otherwise, it is an enigma.
Check out the video to see it in action and compared in size with other devices.