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But in 2008, $10 for a ten-pack of instant photos is just too damned much.

Suck it, retro-hipster-wannabes. If a viable niche market continues to exist for instamatic film, some clever person will figure out how to fill it.

well at least i think thats what they're talking about. it's made by polaroid and such.

First, a few Frequently Asked Questions:
...
There is no film currently available for your Kodak Instant camera.
The correct name for these cameras is "Kodak Instant" or (for later models) "Kodamatic" cameras. Understandably, you'll often see references to these cameras confused with the Kodak "Instamatic" camera line, but they're really two very different things. "Instamatics" are conventional cameras that use 126 cartridge film (I'd compare/contrast 126 with the other 35mm 'replacements' through history such as 828, Rapid, and APS, but that's another story).The "Insta-" prefix was apparently supposed to refer to the "instant" loading made possible by the 126 cartridge. ...However, I do wonder if the near-reference to instant photography was not entirely accidental. [NOTE: In later years, Kodak extended the "Instamatic" name for other camera lines, including their first few product cycles of Super-8 movie cameras and 110 cartridge film cameras (the latter being called "Pocket Instamatics")].