Thanks to Veronicahhh, I started looking into good old Polaroid. They are coming out with a modern age (sad, yet cool) version of the instant Polaroid camera this Spring (in the US anyways), called PoGo. They currently have a portable printer only (again, sadly not compatible with my new baby, iPhone) and the paper it's printed on is something called ZINK- Zero Ink. Pretty neat stuff.
US prices show a 30 pack of paper @ $13 US- not something I'd use everyday but this would have been awesome for my travels through Asia- your subjects (adults included!) love to see the image on the back on the camera. How cool would this have been to print images instantly and gift them! I would have had so much fun! Wonder when it's coming to Canada!!