Check out the Amazing Instant ASCII Cam.
There's no use for this that I can see, but it's fun if you're old enough to remember printing out ASCII artwork on yellow ASR-33 roll paper. This modern ASCII portrait generator uses your Webcam to make a live image of your mug.
The dancing letters are a little Matrix-y, which is cool, but I couldn't find a way to redirect the output to a videoconferencing program, so it's a bit of a solitary experience.
See also: Fix8 ( ).