I have personally never video taped a student. Yet, last week when I was at a student's home, she expressed to me that other teachers back in Korea had used it and how "scared" it made her. Digging deeper into what she meant by "scared" I realized that it was really only by watching the recording of herself did she "realize how bad" her fluency was. Not something she was actually afraid of. So, obviously it's an effective tool.
Maybe it's time to start saving my pennies..