I used to have one of these Photo Traveler SDIO devices. Image quality is better than a Zire 71 or a Treo 600 but not as good as one of the 1mp+ Clies or the improved Zire 72 or Treo 650 cameras. The included storage case thingie was neat but it ended up being rather cumbersome to carry around alongside a Palm.
So, it's low-middle of the road and surpassed by the newer units with built-in cameras.
Also be warned the Veo's drivers are rather flaky and unstable on any device with a 320*480 screen (Tungsten T3 or newer). The Veo did work fine on my T|T and T|T2 and a T|C back in the day...
I think it defaults to storing images in main memory so unless you have 32mb+ of RAM, it'll fill up pretty quickly-you have to manually dump the images onto an SD card. There used to be a program called Veo Photo companion or Veo storage companion that was $10 shareware and could automatically put the jpegs into a directory on your SD card. Kinda pricey for functionality that should have been enabled by the manufacturer IMO.