Well it's a natural development, isn't it? I mean, the premise of "Lomography" in the first place is using crappy cameras with crappy lenses for craptastic results. Using a tiny format for horrible grain on a plastic camera with a plastic lens should get your results to a whole new level of awful, which will be appreciated by masses of pretentious hipsters.
EDIT: I know that quality 110 cameras (Minolta and Pentax SLRs for two) were made and capable of quite nice results at reasonable print sizes for the format. Those might be fun to play with, though if I were buying a smaller than 35mm camera I'd go for 35mm half frame. But using such a tiny film on this thing - well, I just don't get it, but as long as folks are having fun with it and buying film, that's fine with me. They probably don't "get" my messing around with a 4x5 on a tripod either.)