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@lae
If you were the smart engineery type, you could make an overdrive hub; each turn of the pedals would give two turns of the wheel (or whatever ratio you wanted). This'd mean you could get a decent high-speed ratio on a small 26" wheel.
You could also use it to make a really really tiny folding bike - like two 16" wheels, handlebar and a saddle, and that's it. Wheel size would be limited by minimum crank length I suppose.