You need this. It's just awesome fun when you've got mates round or when you're bored as hell!
With EyeCreate you can take an array of photos including pop art and groovy effects.
The video mode records various types of film and can even perform stop-motion animation with assisting ghost frames! The video quality is fantastic, far better than a normal web-cam and switches between wide and framed modes.
The cherry on the cake is the bad-ass microphone that sticks kinda strangely outta the top. It's got a 4-way directional mic and has a noise-supression thingamagiggy that leaves you with perfect sound recordings even if you've got a small livingroom full of stoners mummbling about munchies.
Some of the newer games for the PS3 use the potential of this cool wee gadget to map your face onto characters (i.e Pro Evo Soccer 2008). This can have hillarious results as people's bodyparts march proudly onto the pitch.
You can also download plenty of games off the network for practically nothing that allow you to spend the long nights waving your arms about in the air like a total tit. But they're pretty good if you got people round.
You should totally get this. If you wanna make the most of your PS3 you simply NEED this bloody thing!