i've been seeing a few photos like this lately and at first i was like "my gosh, those models must have taken forever to build" but then through some sort of random search i came across a few groups of tilt shift photography. these are real pics manipulated by photoshop or MS paint to look like dioramas! brilliant!
this one can be found in a group called "top 20 fake tilt-shifts" on flickr. a good quick tutorial can be found here.