UPDATE AS OF MC-1.9: The glass item elevator design has been largely de-bugged and rendered non-functional by the MC devs, making this design again more relevant. There are still some ways to make the glass item elevator work as of the current 1.9 snapshot, but the devs have expressed a desire to make it completely impossible.
(OLD) UPDATE - MC-1.8: This design still works, BUT, virtually all redstone item elevator designs are now outclassed by the new, much simpler, and quicker "glass item elevator" bug. Search YT for a good tutorial.
Build it - 5:13
We observe a very lag-friendly, non-resource-heavy, 100% efficient dropper-based and automatic item elevation solution in Minecraft 1.5.1. We then discuss the pros and cons of its design, and learn how to build it.
Edit: I've been one-upped! If you would prefer to sacrifice resources for luxury, check out fennoman11's item elevator design. It allows for item input at every other block in the dropper tower's height, and also input from two different directions, successfully sending all items to the top with no extra noise. It requires 1 comparator, 2 repeaters, and 3 redstone dust per 2 levels of transport.
• Item elevator working in 1.5.1 | Reds...
My own design only accepts input from one direction, and only from the very bottom dropper.
If you have an idea for a challenging Minecraft creation which you'd like to see realized, mention the idea in the video comments, and I'll try to cook up the smallest and most efficient solution I can think of! I also appreciate any constructive criticism regarding my narration, presentation, and video editing skills.