We use this webcam mainly for making skype calls from our desktop PC. Previously we had a Microsoft lifecam VX-2000 - a VGA (640x480) webcam about 3 years old - but the cable had been severely abused and was no longer working. There were of course HD webcams around at the time we bought it but the price seemed excessive. (And long before that I owned a logitech quickcam zoom (from 2004) - but let's not go there!)
so being relatively happy with the other microsoft webcam I decided to plump for another one, just a few pounds more than we originally paid for the VX. On receiving it, though, the difference is night and day.
First of all, the size was smaller than I expected. From the picture I expected it to be wider than the VX, but actually it turned out to be shorter and about the same width. This is a good thing (I thought it would be ugly at the size I was expecting it to be, but the design suits the size it actually is)
The stand is not just stuck in one position like it looks in the picture - it's flexible so that you can easily adjust it and get it into position, which means you can get it to stand up well either on its own or on top of a screen - without resorting to it intruding on the screen. It's quite a clever thing actually.
Picture quality is another level compared to an old VGA webcam.
What I was most impressed by is the improved dynamic range. With the VX webcam, if there was a TV in the background, the rest of the picture would dim slightly to accommodate, but of course the TV would still be a glowing blob (a lose lose situation!). With this webcam, the improved dynamic range means that the room does not appear dim, and yet the picture on the tv is visible. Not that I'm spending time watching TV with our skype contacts, but it's a good example of how a newer webcam cuts out problems with the background interfering with the brightness of your picture.
Of course being an 'HD' webcam the picture detail and clarity are also improved - that is to be expected, and our contacts have commented on how much better it is that they can actually see us. I should add that It's also far superior to the picture from the (old) nexus 7 which we use for skype calls around the house.
There is not a great deal more to say. We don't use whatever software may come with such devices to add funny effects or whatever to your video.
And there are of course features in more expensive models that you may be missing - but if you don't know what those features are, you probably don't need them and won't miss them. If you are looking to shoot professional videos - well you should probably just buy a proper video camera. If you just want a webcam for making calls, maybe youtube videos etc. this is a very good combination of budget and quality.