I equate it to Google Talk. Replace "webcam picture" with "online status" and you can say remarkably similar things about the two.
Both Google Talk and Sqwiggle are meant to facilitate communication and not to be used as accountability tools, but if you don't trust those you're sharing that info with then it could be used that way. Both give out signals of my online status based on my presence, and both can manually be set to a "busy" mode(to the detriment of communication) if I want to not be bothered or "watched". Sqwiggle is obviously a more intimate version of this, but that works to its benefit in lowering barriers to having quick conversations with people you can "see" are available.
However you spin it, I don't think many people would enjoy having a webcam on them as they code. It doesn't sit well. Chatting is one thing, because there's no sense of someone watching you. There's a certain creepy factor about not knowing if someone else is just watching you on their screen.
I've used Campfire, IRC, Skype, GTalk, and most recently Hipchat with various agencies and startups. It's just my personal preference to use that over face to face when we have random questions.
It's definitely not a one size fits all situation, there's room for personal preference. Just upthread there's someone lamenting a downside of GTalk and the like. I'm only saying that while the concept definitely sounds a bit invasive, the actual downside is really no different than that of widely accepted alternatives that don't have that stigma.
Absolutely agreed with this. Opened the comments just to mention that while I agree with most of the article, Sqwiggle would be a huge no-go for me. And that's essentially why. Even aside from the big brother aspect, I wouldn't want it for the same reason I hate those setups where you put two desks back to back and get to stare at your buddy across the table from you while you're trying to concentrate. It just doesn't make for a productive work environment. I don't want to have to think about what I look like while I'm coding. I don't want to have to worry about how it looks if I walk around while I'm thinking instead of sitting at my desk, or if I go to the bathroom too often or whatever.
Google is actually doing away with online status as they move from Talk to Hangouts, and while it originally bothered me, I realized that I leave my status set to away all the time anyway! Having it advertised when I sit down at my computer - the exact time when I'd prefer people not bug me unless necessary so I can focus on what I'm doing - is counterproductive and useless anyway since I'll get their messages just as easily on my phone, and if they're important enough I'll answer them whether I'm busy or not.
All this talk about trust is essentially useless if you're under surveillance all the time.