I'm not sure what that camera is selling for. Compared to the 3 megapixel cameras that are popular on this site, that one is pretty low-end. It might do the job fine for you, though. The things that I would be concerned with are the lack of an optical zoom lens, and the SmartMedia memory. SmartMedia is a dead memory format. I don't know how easy it will be to find SmartMedia cards. The camera has 3x digital zoom, but digital zoom is generally crap. If you're really only going to use it around the house, it might be fine. But if you end up taking it on vacations and trying to take family photos, you could end up frustrated and disappointed.
Have you looked at anything else? Is there any particular reason why you're interested in the Polaroid? Have you looked at the Polaroid camera reviews on this site?