I love mine.
Got it pre-modded, courtesy of @Harcroft.
@EvanBlax has modded his with industrial lenses, which helps with field of view and clarity too.
(image taken by Evan)
Here's a link to a seller who offers compatible lenses: eBay - Industrial Lenses by seller LELEN 02
There's also some STL files floating around of the Eyetoy's plastic enclosure. I'd love to modify that and put a big Xbox "X" shape in the case. Maybe even accommodating industrial lenses? That would be kickass.
When I get around to opening my Eyetoy, I also plan on replacing the red and blue LEDs with white ones. The stock LEDs are surprisingly bright! If you get close, you can see red/blue lighting shining on your face. Swapping in white LEDs would turn those into a makeshift ring light. It wouldn't be dramatic, but would be more useful than red/blue I think.
Speaking of the camera, the Xbox Video Chat app has also been translated to English by Evan. He's done a great job with that. I've been poking around with making a skin for the app. Still tinkering with that...
For anyone wanting to explore the video chat app themselves, here's some notes I just want to put somewhere publicly:
UIX files can be opened with https://github.com/Ernegien/UIXTool. The tool can't import modified assets, so hex editing assets back in would be the route.
XSB and XWB files are related to audio. Sound effects, etc.
Background music adds in about 500mb to size of app. Music can be entirely removed, or replaced with custom songs. Standard Xbox WMA format applies. I'm planning on dumping all but a small handful to keep app size compact.
App can't be patched to run in HD... at least not easily.