Yes, I have heard of it. Yes, I have used it. It is not new--the first type of product like this was invented in the 1920s and was used even before tampons became popular. I use the brand: DivaCup and it is really fantastic--doesn't irritate my skin like both pads and tampons do, equals less mess to clean up and it's also better for the environment. I am a big fan.
Those ladies out there who avidly promote cloth diaper usage for it's benefits for the environment ought to also consider using a soft cup as well. :0)