It's an ordinary camera lined with Sugru silicone rubber, which is kind of like clay but also sorta like duct tape. Once attached to something, Sugru sets itself permanently. Like this camera. Watch it roll around on the street.
You can actually make your own Sugru camera and because of its soft-touch rubber silicone-esque properties, it bounces around and absorbs shock quite well. I'm not sure it'll survive a 10-story drop but if you gave your accident-prone kid this camera, it should be able to handle his butterfinger-laced hands. [Instructables via Laughing Squid]