Ever heard of Modu? Neither have I. The UK manufacturer is planning one of the smallest Android phones, after launching "the lightest cell phone in the world." The Modu 1 is designed to work with larger jackets that add functionality, so maybe the yet-unnamed Modu Android will have some similar goodies such as a keyboard jacket.
How small is it? Here it is with a more typical Android phone. It's smaller size makes it look blocky, as the phone is not thin. It seems to have the profile of a deck of cards minus the faces.
Modu's Android phone will run 1.6 Donut (guess ‰clair can't fit in something that small), and comes with a stylus (you were planning on typing on that tiny thing?) What it doesn't come with is 3G. Go Wireless or it's useless, for the prototype, anyway.