Ya I heard about this as well recently on ummm another webmaster related website. I think it's great!! I love the unique take on an already established technology. Totally huge kudos to them.
I actually heard there was a major porn star - top 10 kind of fame who was working on something similar in nature for her own live web cam shows from her website and had been working on this for awhile now so they aren't the only ones doing it but still, love the idea.