Though the Eyetoy has been very successful as a peripheral, it hasn't attracted developers to take it up, and that's the issue here. Few developers have concerned themselves to create EyeToy games, and it's mostly slipped by the wayside as a concept, losing the momentum it had at launch.
Of course things would be very different if the device was included as standard. If EyeToy was packed in with every PS2 since launch, there'd be something like 40 million more out there, and you can be sure developers would be targetting that somewhere along the line!QUOTE]
I don't think the EyeToy was functionally good enough to become a product that you can usefully implement. It was too big a hassle to set it up properly, and the PS2 was too slow to pick up data from it. It may well turn out to be better now that we've moved to next gen, the Cell can analyse the picture, and we can crank up the resolution.
Combined with online gaming becoming a big hit, webcam chatting becoming more common, and the additional power allowing for more kinds of application of the technology, it may become more successful.
The wii is better than the eyetoy, as you can use it for much more applications. And I think it's good that the wiimote and sixaxis both share at least the six axes part of the motion tech, as this will eventually help both platforms.