So I looks like Polaroid have finally admitted that no matter how retro cool the Polaroid camera is the prohibitive cost of film means it's never going to win out over camera phones and the digital age.

So they've come up with 'PoGo':
http://www.polaroid.com/pogo/us/

It's a rechargeable battery powered mini-printer that connects to your camera or phone by a USB cable, printing out on 2" x 3" papers that come with ink inside them apparently.

Prices are better than Polaroid cameras after you've taken a load of shots:
http://shopping.kelkoo.co.uk/ctl/do/search?sortBy=totalprice&siteSearchQuery=polaroid+pogo&fromform=true
with it being about 30p or less per print but £90 for the printer.

If I had a spare £100 I'd be quite tempted for the fun value. But I don't.