Micro Air Vehicles
Offwhite98 writes "Over at The Gainesville Sun they are running an article about really small planes used to watch all kinds of stuff. I am sure the common applications for these devices are pretty clear, but if you could use these for a lot of fun. Use 10 of them as flying candid cameras at a wedding or a party and you I am sure you will get interesting results." A little bigger than the Spy Fly but probably much more robust.
http://autopilot.sourceforge.net/
-- http://www.swcp.com/~hudson/
robots.net frequently has articles on Micro Air Vehicles and Micromechanical Flying Insect robots. The Berkley MFI Project Overview is another good place to get more info.
What about automatic pilots, though? For example, the AeroVironment Black Widow, which is a six-inch aircraft, has "altitude hold, airspeed hold, heading hold, and yaw damping" (from the PDF available on their site).
With bigger r/c vehicles, total autonomous flight was achieved a long time ago, even for helicopters, which are much more difficult to stabilize than planes. This can allow an operator to simply guide rather than actually pilot a vehicle, with greatly reduced chance of error.
This already exists in commercial technology: there's an r/c helicopter, made by Honda iirc, used for applications like cropspraying and aerial photography. An operator can fly these with minimal training, because stabilization is automatic.