I don't think you should use technology for technology's sake, but I do think there is a place for avatars in eLearning. Avatars can be useful for narrative, for example. Video is expensive and can become outdated very quickly.

As lauras said, successful use depends on the learning objectives and target audience.

You also need a midrange avatar. By that I mean that silly ones can insult the users and too realistic ones can make users uncomfortable.

Scase, I'm curious as to the easy to use, relatively inexpensive avatar tool you found. Can you post a link or PM it to me?

Thanks,

Jay