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Although I'm not a huge fan of FRS radios, it does come in handy from time to time, especially when we're camping and want the kids to take a radio with them while they're exploring around. The problem is that they always put the radio down, drop it in the ocean or lake, or just don't hear it. This looks like it could be a practical, inexpensive solution to that if you only need short distance communication:

Pair Freetalker Walkie Talkie 2-Way Radio Digital Watch - eBay (item 140325726494 end time Jul-08-09 01:47:39 PDT)

too big, especially for kids...

Dick Tracy's "Two-Way Wrist TV" was smaller than these!

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I first saw these in use while in WV camping on our anniversary. A family had them . It was pretty cool to watch the mother give a call and keep in touch with the kids. I think they would come in handy especially as kids are prone to set things down as you say . I know when we go camping the kids don't like carrying around the FRS radio. These seem a lot more convenient in that situation.

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http://www.haminfobar.co.uk

They are of course low powered..

However very neat radios indeed..
I think there is a market for them indeed

you can also just hang the radio on a string around their neck or belt (like how you hang your reading glasses around your neck, or when putting on your kids' mittens).

Like KingCobra said, they're low-powered, and that could be a problem if they wander off too far.

When they first started being used in numbers I had a UHF mobile programmed with all the freqs. I heard a couple talking as they were going down the highway, I jumped in and said hello. The female said, "honey what is someone doing on our channel", I thought that was funny.

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