Reminds me of the Zipit Z2, which was a handheld messenger toy that could be hacked to run linux: https://mozzwald.com/zipitz2 Not as much power as an RPi though.
Yep. That, and Ben NanoNote (http://en.qi-hardware.com/wiki/Ben_NanoNote), which is another Linux device in the same size category as the Z2 and with similar specs. The notable differences between the NanoNote and the Z2 is that the NanoNote has a USB 2 host port and no Wi-Fi.