I'm in the same boat as you. My parents are back home in Hawaii and I'm up in Pittsburgh attending school. My dad told me to buy an iSight and, I will plainly say, I had my reservations. I mean this thing will only work with my Mac, it's not producing the quality of a camcorder nor does it have a camcorders capabilities. I was afraid the thing would just sit on my laptop, occupy a firewire port, and collect dust.
Well, I'm happy to say that is not the case. I use it regularly as I touch base with my parents about every week. Plus, I use the built-in microphone every once in a while for recording the funny events that seem to happen only at college.
I'd like to be able to use it to make small videos, but haven't had the time to find the necessary components and learn how to use them.
My only problem currently is that sound can get quite choppy, but I blame this on either iChat or my network. I've found that by simply muting my side, sound comes through flawlessly. Highly recommended if you're expecting a monologue.
My final suggestion is, if you like ease of use, clean looks, small stature, and (relatively) low price, pick up an iSight. iChat does, however, work with a lot of camcorders, so if you don't mind shelling out the extra dough for a camcorder, it might be the way to go. I'm just not sure whether connectivity will be an issue.
Hope this helps.