I stumbled across this blog entry on the US Playstation Blog which shows what there R&D department are currently doing with the Playstation Eye.
I must admit I'm pretty impressed - they could seriously use some of these elements to make fantastic games that could be user designed by players, in a similiar fashion to Little Big Planet, but with very limited work on the part of the user.
I especially like the last video. The game reminds me of the Wiiplay tank game, but the program seems to effortlessly scan just about anything to be used as a tank - and also the level is user designed. Very impressive.
Anyway, link HERE.