Here's an interesting point-and-shoot camera design that companies should look into. The FlapCam is designed out of two pieces connected by a hinge, so when you're shooting it looks like a relatively normal camera, but when you're done you can flip it aorund the other way to protect the lens and the LCD screen.

A design like this negates the need for a case as long as you remember to flip it around when shooting. Also, the hinge can flip open partially, so the user can take pictures of himself or other stuff at an angle.

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Design Page [Matthias Lange via Yanko Design]