HP has a digital camera–the Photosmart R837–that will correct that glowing pet eye that happens when a flash is used. It’s done while the photo is still on the camera. (Note: Glowing eye is different from the red eye effect people get sometimes when flash is used because animals retinas are different from ours.)
The camera works by analyzing the area you select (the pet’s eye) and then correcting the glare while keeping the glint—the reflection from the surface of the pet’s eye. You can read more about how it works.
It looks like the camera does a pretty good job fixing the glow. The technology blog, Traveler 2.0, liked the Photosmart R837. I bet more cameras will come out with this feature.