This is a great video about the new G-Diaper which is the only eco-friendly disposable/cloth hybrid on the market today. While I am a very vocal advocate for elimination communication (aka diaper free baby), I also know that going totally diaperless is fairly difficult if you ever shop or travel or pretty much do anything away from home. It is not impossible to go totally diaperless but many parents practice elimination communication and use diapers as a backup. (I used diaper back ups until my daughter was almost two).
That said, the G-diaper is a superb alternative to disposables and this video shows why. The waste goes down the toilet where it belongs. You can even compost the inserts that only contain urine. It is really a great alternative and the best of three worlds (EC, cloth and disposable. You can learn more or purchase the G-diapers at Gaiam.com