I made a demo recently with my Google home camera using the official API https://github.com/hparadiz/camera-notif
But your way of grabbing the stream is so much simpler.
Overlay layer is super new in KDE Plasma is the only problem. You can also do v4l2loopback and make it a virtual camera.
Have you tried doing video + pipewire yet?
I am also using v4l2loopback, but its annoying to juggle /dev/video* devices. I wanted to do video stuff in docker containers, and it would be amazing if I could do pipewire in each container and have no global state.
I couldn't get anything to work in Chromium. FireFox saw the device, but video didn't come across.