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Nice idea, but in Chrome when you activate WebRTC, the favicon will blink with a "recording" icon, ruining the effect.

I don't think so, it works fine for me.

Im seeing the same issue on 26.0.1410.3 Mac Chrome

I'm on 24.0.1312.57 and it is working fine, but it says I'm up to date, is that a dev build or something?

Im not at that computer now, but according to http://omahaproxy.appspot.com/ it is the OS X dev build.

Chrome 25, beta channel