Yes you can use the PlayStation 3 camera in LittleBigPlanet to stamp your picture onto just about anything, from the world you create to the sackboy you control. But what stops people from filling the LittleBigPlanet with crotch-shots and porn? You do.
Folks from Media Molecule told me at a recent event that LittleBigPlanet has a pretty robust tool built into it for reporting problems. The reporting tool allows gamers to stop the action instantly, take a snapshot of a scene and send in the picture with a report of what they see that's wrong. The report is filled out by selecting from a number of fields. The form lets you report just about anything, be it copyright infringement, pornography, illegal activities or, shudder, copyrighted pornography.