I bought an iMac G5 iSight myself two weeks ago. It made a huge improvement over my six-year old G3, even with the G4 800Mhz upgrade card and a new, higher end video card (which I think damaged the mother board somehow).
I use it mostly for surfing and financial tasks, and it is great!! I thought that some web sites were terribly slow downloading graphics, but it turned out the my machine was just terribly slow processing the grapics. It was the motherboard, not the CPU or the video card.
I put tape over the iSight camera, because I don't trust the Apple factory representatives assurances that the camera cannot be accessed from outside.
The LCD monitor and DVD video applications are good enough that I'm thinking of getting a MyTV television tuner & PVR, or something similar, and not buying a new television set at all.
ping
Are you sure "tape" is secure enough?
Wouldn't you feel safer using .... ;^>