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No, now both functions are compromised.
The light cannot be too powerful due to battery drain, battery size, and heat management.
The camera is going to be useless in any inclement condition as the light is going to directly illuminate all rain/fog/snow/drizzle directly in front of the camera.
Additionally, I believe that cameras and lights should be mounted at least a foot apart to ensure that shadows are cast (in potholes, etc) that increase contrast and help the camera prove more useful in all conditions.
Yes it's cheaper, but everything is compromised. Not quite as bad as the integrated camera and rear light that I've seen before.
Velocio
@HoKe
http://www.bikeradar.com/news/article/cycliq-fly12-combines-front-light-and-full-hd-camera-43605/
Looks pretty good no?