Mine isn't, I run an OSS system that lets me verify that the camera is indeed off. It also works disconnected without sabotaging the functionality and software that doesn't require a connection. The camera led is impossible to disable without hardware tampering, too. And I can even tape it and it will continue working.
The XBOX PRISM is a different creature altogether, and a very worrisome precedent precisely because we already have smartphones and tablets that could potentially follow that path.
On top of all that, it's clearly the superior hardware for cheaper, without the surveillance device bundled.
They are in for a rude awakening.