I'm going to suggest an upstart idea, that I've been hoping for a while that someone would make :)
Product brief: Basically a cellphone type camera mounted on one side of a pcb with an XS1-L1 on the other, preprogrammed with a software suite for image processing and analysis.
Physical properties and connections: My idea was that this has to be small as possible (because I'd use it for robotics :)) so everything on the board is kept to a minimum. If possible, the XSYS ports would be made smaller and one would have to use an adapter cable to connect with XK-1 dev boards (and in the future new XMOS boards could use this smaller contact). The PCB should have a ground plane behind the camera btw, as this increases image quality with some models.
- Decent camera (about 5 Mpix, so that the image can be downsampled for noise reduction)
- Image processing at lower resolution (perhaps 320*256)
- Video stream out, for example to a PC for debugging/development, at the same time as the image processing is active.
- High res jpeg snapshots (though it's ok if the image processing stops for 2 seconds while doing this).
- Dead easy to integrate with other XMOS products and other microcontroller systems.
- Powerful reprogrammability for advanced users.
This might be a little too much to wish for though :) A development environment for the camera, that runs on Linux, Mac and Windows, where you can connect and tune different filters/algorithms that effects the video stream. You'd get a live feed from the camera if it's connected and you should be able to easily set up and tweak object/face recognition and other abilities even if you don't know much programming (like connecting boxes in Simulink, except better UI :)).
Usage examples: Robotics (of course) everything from small hobby robots, through university research projects to industrial AGV:s. One (or two, for stereoscopic vision) of these boards could be connected to another XK-1 to add vision and interaction to just about any project. It could be used in intelligent security and surveillance systems or perhaps an art installation.
Possibilities: Looking at other's projects involving XMOS and cameras, it seems to be possible to connect certain cameras pretty much directly to the microcontroller so the board design could be pretty simple. Hopefully a lot of software could be ported from OpenCV and similar projects, to reduce development costs. Cameras are pretty cheap, especially if you buy them in bulk, so the whole project could end up in a similar price range as a plain XK-1 ($69 without XTAG-2) depending on the profit margins on the XK-1 of course. This can be compared to the CMUCam3 which costs $239 and has very low resolution. It could of course be sold ridiculously expensive to bigger companies if you bundle "support" with it :)
Market: Being cheap, and slightly targeted towards hobbyists, I don't think single board sales would generate a huge profit. But being very easy to integrate into systems it could strengthen the XMOS brand name, and hopefully generate sales leads for other products. And there's of course always a chance that some toy company (or security etc) wants to use it in their products and orders 1000's of them.