EasyToy - A Sketch-based 3D modeling Software
 

EasyToy is a 3D modeling software. It uses a sketch-based modeling method and a 3D painting method. The user- interface is very friendly, and operations are very simple. A complex 3D model can be created quickly by combining several simple operations. Compared with general 3D systems, EasyToy is easy-to-learn and easy-to-use. EasyToy has wide applications, including toy design, graphics, animation and education. It is not only suitable for toy designers to design toys and CG creators to design 3D objects, but also for non-professional users, especially students, to design 3D cartoon.

A trial version can be downloaded from the website:
http://www.livesforce.com/index_eng.html

10 years after the inital sketch based paper it becomes commercial i see.

i assume this was made with the help of Takeo Igarashi

good ol' fibre mesh :)