Yeah this game is based strictly around the use of the DSi camera.

A note about the resolution, something i've seen a lot of people confused over.
DSi game resolution is no bigger than standard DS. All DSi games "so far" have used 256x192 pixels per screen, the image just gets stretched out to fit the DSi larger screens. The same thing happens when running a standard DS game on a DSi, it's just up-scaled as far as i know.

Btw, even the DSi firmware is 256x192, same as DS/DS lite