Can you explain what OverSight does that /Applications/System Preferences > Flash Player > Camera & Mic > Block all sites from using the camera and microphone doesn't do? (I didn't see any reference to Flash in your linked review.)
Edit: Is it that your camera and mic can be accessed by entities other than websites?
Yes, exactly. The Flash pref only blocks Flash from using the camera/mic (Web sites still have ways to do this without Flash!). Oversight blocks everything.