You can think of them as folder bikes that don't fold.... which have small wheels. The Dahon Hammerhead and SmoothHound come to mind so folder bike manufacturers have ventured tentatively in to the area.

The idea of a compact rigid frame with small wheels offers all the advantages of a true folder with none of the flex that comes from a frame that's taken apart.

They're popular in Japan and have only recently begun to appear in the States... Silgey, Big Shot, Soma and soon Bikes Direct offer will offer them soon for sale. There is also a CF mini velo made by RANS.