The line can be found in QuickTime's localizable.strings under "Next Generation USB iSight" and also carries a reference of 'iSight HD'.
A post in the forums following the report suggests that the string has been present since September 2007.
The external iSight was discontinued in 2006 due to environmental reasons; Apple currently uses built-in iSights in all its Macs apart from the Mac Pro and Mac mini. The Cinema Displays currently remain iSight-less.