The Sony NEX 7 is the advance in the new small cameras. coming out in November 2011, with it's 24MP sensor and light weight, it will be a great camera for the MK even without an AV output for FPV.
11/20/2010 - I have been debating which camera to buy for the Okto2. I am hesitant to go with the Canon2T1 as it will make the Okto operate continuously above 80% power. The 2Ti is a great camera, but, I am waiting until January 2011 for to Panasonic GF-2 to be released.
The GF-2 looks very promising and worth the wait for now.
Update: 12/12/2010 - The Sony NEX5 is also very intriguing and may be the best option for aerial photography based on it's larger sensor and higher resolution.
For now,I am practicing with my GoPro and will decide on a better camera when I get more comfortable with the flying.