I've tried a couple of cheap cameras and my brother lent me his Logitech 9000 Pro. No contest. It was brilliant. I've now had one for almost a year. Software links to Skype easily, but it does promote its own Logitech Vid, which I don't happen use.
As has been said, what you see may not be what your correspondent sees, regarding picture quality. It has a built in microphone and I use the desktop speakers to hear. You can of course use a small headset if more privacy is needed. Had no problem whatsoever with it. You can change the resolution to suit your own broadband speeds.
I do not, however, subject my friends to watching my own face every single day. I like them too much to put them through that ordeal:))