K-Team Robotics has done some amazing stuff with nano quadrotor flying vehicles. This video shows the progress they have made in coordinating and controlling these small machines. The quadrotors move like a swarm, flying in formation, including three-dimensional formations and object avoidance.

Could this be the future of the US Air Force? What if spy drones were this big? What if tools like this were used to deliver small-payload materials behind enemy lines?