Sending photos wirelessly is possible. I've not done it yet, but from my understanding enzo (in this thread) has done it using the XBee system.
If you've not used the Arduino to read and write to a microSD card, it's not as straightforward as it seems. I have managed to save photos to microSD using the uFAT library for Arduino, but not without significant modification to the library code (the uFAT library was designed primarily for storing text, not arbitrary bytes). Also, uFAT only reads/writes existing files rather than allows you to create new ones (all the JPGs on your card need to pre-exist - I created empty files of appropriate size).
However, if you're just sending images to a computer host, there's really no need to store them on an SD card beforehand. Just transmit them as you receive them. The camera has a built-in EEPROM that will store one snapshot at a time.
Nobody has yet experimented with the video to my knowledge. Basically, you would get the RAW, uncompressed images as a series of frames, not a single video file. This is good news, but I'm not sure about the framerate. The camera is not terribly fast, and even at 112,500 kbps baud transmitting 640x480 JPG images does take a few seconds. My guess would be that at 160x120 RAW you might get 5 fps or so. But, that's just a guess.