Well I just saw some Images of a Panther Chameleon eating some kind of
small Lizard in captivity does any one know what it could have been and are they good for Chameleon's beneficial wise?
Some people use Anoles or House Geckos as feeders. You can purchase "Feeder Lizards" at various pet stores.
I have read nothing that shows it is beneficial for Chameleons and as BocaJan said above there are parasite issues. A chameleon is more likely to be susceptible to a parasite or disease another lizard is carrying vs an insect.
I generally at least like the taxonomic class to be different in my feeders...