Oh, and here I thought it had a real miniaturized color television camera and mini CRT screen built into it...
Actually, it sounds like a neat mechanism for a toy of that era. Compare it with the latest portable gameboy... Kids these days sure are spoiled! I honestly believe the old-style toys are better, in many respects. At least kids playing with them had to inject some imagination, some role-playing of their own, instead of having it spoon-fed to them. The old toys developed the mind; many new ones tend to "dumb people down". The old toys were more social, too: kids could play with them together and interact face-to-face, not over a modem.
God, I'm sounding like an old geezer already, ain't I?!