As much as we support pro-active parenting, we have trouble describing the "My Little Eye" baby cam as anyting but creepy. Even its name is disturbing to us.
There's certainly nothing wrong with the concept of baby monitors; it's the eye part that we object to. It just seems wrong to introduce surreptitious monitoring in the form of something so innocent as a crib-side flower, much less one that has an unsettling eyeball in the middle of it.
The last thing kids need is another reason to have nightmares so early in life. And as Slashgear says, the $265 price won't benefit the emotional state of their parents either.