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It's two sided -- officers behave better because they're on camera, and people make up fewer false accusations because they know they were on camera.

My city (Denver) passed a law mandating body cameras for police during the last election. It'll probably be a year or two before we get data on how well it's worked.

Also the person the officer is speaking with knows their behavior is being recorded.

One concern I have about cameras is if the police get the opportunity to review the footage before testifying, and others don't. I think that would be a significant shift of power toward the police, though it may still curtail some of the most extreme abuses.