Yesterday I read about photofonts in a russian typography community at LiveJournal.
Even if you don’t read in Russian, have a look at examples that are provided there.
At the moment photofonts are supported only in several applications, but this might change, because the idea was “floating in the air” and is likely to be widely adopted soon.
Inventors are a russian firm Fontlab Ltd. that is known for its great proprietary typographic tools, oriented towards western users.