These new videos from the PS3 research and development labs show off some of the amazing potential the Playstation Eye has.
http://www.gametrailers.com/player/27862.html
http://www.gametrailers.com/player/27861.html
http://www.gametrailers.com/player/27860.html
The first video like the Atari 2600 game Combat looks fantastic. Scanning anything to be used as your character looks like so much fun.