I think it's a decent deal, although I don't usually shop for cameras.. but given that it has 64 MB (not much, but enough to take.. several shots in 640x480 res (26?), webcam functionality... it might be decent. Especially since a webcam can cost you about that much. The quality's probably low, and the battery might be questionable.
Mmm, no, it's not something I would buy, but... a gift, for a cheap webcam + camera... might be ok, for a less than technically inclined person, who wouldn't really need it for photography - it would be an upgrade of sorts from a cellphone cam ^^;