My older Micro doesn't suffer from rolling shutter or the short battery life, plus it's only US$75 at Brookstone, so apparently they've taken several steps backwards.
The thing is only the size of my thumb anyways, so another cm or so smaller isn't that big of an advantage to me.
Now one issue is my Micro IDs itself as USB 1.1 (on Linux, Windows XP and Vista, on several makes of PC) and only transfers at 1.1 speeds. I talked to Veho tech support, and they didn't bother to reply. It's a LOT faster to take the card out and use a USB 2.0 reader.
Also, both xine and mplayer find lots of issues with errors in the resulting video files, but they can still play it.
I didn't know about keyfob cameras, but now I do... thanks to the other comments.
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