Well after looking at the device at a friend's house, it looks more like a wii mote. The Eye toy camera is a nice piece of equipment and I can see that being used for more games.
All my second hand PS3 games all work with the move, and can provide extra functionality, but I am using a desktop environment and I am not sure if the device will read any input at three feet away.
I'm sure after the holidays, the game shops will have a surplus of the stuff, which I can snag for cheap.
BTW the £157 PS3 works perfectly with PS1 games, but not as compatible as my Android FPSE
