I bought this camera so I could skype my parents and friends whilst not in the same city anymore, and it has performed exactly as I had hoped :)
I think it's well priced camera for what it is, and I have found that 720p is more than enough for social video calls. I cannot speak to the mic quality as I used it with a headset.
It is easy to set up, sits well on the top of my monitor, and folds away nicely with the lens protected for storage.
If you want a relatively cheap, but HD, webcam, consider getting this one.