Cameras are getting smaller and lighter. People are attempting to fly GoPro's and iPhones on Steadicams. For lightweight cameras including Sony's A55, Panasonic GH2's, or Canon T2is, here's a simple DIY DSLR Steadicam (merlin style) stabilizer idea from Vimeo member KFLeung. There isn't much tooling required, it's more of an assembly of readily available pieces which combined provides you with a framework, gimbal handle, and counterweight for a camera Stabilizer. Starting with an inexpensive Flip Flash Bracket. These brackets are made for photographers to mount a Flash above the camera. When the camera is rotated in either landscape or portrait position, you can flip the flash so it still remains above the camera (i.e. to bounce light from a ceiling). This video is actually about 3 years old, but there are still several people using this method with good results.
KFLeung's first test video posted after the build
The Gimbal (handle) is based on a mini tripod with ball head so that it swivels freely. Getting a good fluid mini tripod is key to having smooth movements.
A really simple method to creating a 3 axis Gimbal Handle most people don't think about is to literally take a mini ball head and throw it on top of a Barska Handgrip. This setup adds some size, but is extremely comfortable and acts as a decently effective Gimbal Handle system. (I can see many of your minds already at work with that idea...)
Mini Ball Head
The arch design of the bracket gives space for your hand to work, while providing an area to mount a counterweight below. At this area, you can use simple Fender Washers like most Hague or Indiehardware stabilizers. When you're done, the stabilizer folds into a small form factor.