You all thought they were crunked outta business, but here's eStarling, looking us right in the face with their 7-inch WiFi picture frames. ThinkGeek has a limited edition run of the frames going onsale now. You can email the frame photos, as it'll check a POP account. Or you can have it subscribe to an RSS feed from Flickr, or read SD/MMC cards. $250. This is the real deal: Why buy a digital photo frame unless it updates itself dynamically, too?
Of course, time has marched and bragging rights have been lost. See the 10-inch DigitalSpectrum frame that works with Vista, and has MP3 and Video playback.
Size aside, the problem is that many of these frames have really low pixel density, or garish colors. We'd have to see this frame before judging it.