That is correct, the icon is a small version of the iCam icon (camera lens). From this icon, you can stop, start, or quit iCamSource. If you select "Preferences" it will display the iCamSource window.
If you are running the Mac version of iCamSource, an "unofficial" way would to hide the small iCam would be to right-click the iCamSource application in your Applications folder, select Show Package Contents, then open the Contents > Resources folder and renaming or moving the iCamSourceStatus_Running.png file. Then, when you run the iCamSource and Start it, no icon will appear in the menu bar, although there will be a blank space still visible that you can click on to access the iCamSource.