OMG, an open API on a VGA quality camera. Gets me all warm inside. Again, tell me when it's available and able to be used with other non iphone 4 phones and when it doesn't require wifi network to work. Real world, if I'm on business travel at a hotel and want to say goodnight to my kids, guess what, I'll log onto my company laptop that I need for business anyway and turn on it's built in camera and use the hotels wifi or better yet, Ethernet and get much better quality video streams. Been doing that for several years. This update isn't providing me any betterment there yet nor in quality on the other end as they will be seeing me in stunning VGA thanks to the front facing cameras limitation. When I'm traveling with my sales reps and in the passenger seat and can video conference live with my boss while he's on his computer at the office or on his Droid or Blackberry, I'll see some value in it all. Until then, it's just a cool feature for kids to play with while in study hall.
Doing multiple tasks mentioned at a price savings is valid, but then with that savings come very limited quality. No thanks. That's called low value. I won't trade quality for price and convenience. Not when it comes to photos or video of family and events that warrant carrying the right device. If I'm going to pay to "upgrade" I expect and upgrade, not just cool features. Cool, but no deal maker.
What's wrong with comparing the iPhone 4 and your prized updates to dedicated devices? Afterall, that's what you're touting....it's as good or better....why? because it's all in one device? where's the value in that? tell me about value when it can truly replace a device. Otherwise, I have more than one pocket and would much rather carry the best quality device for the task at hand. Heck, cost / value wise, I'm way better off with my slim design P&S from Panasonic camera that shoots HD video too. With much better dynamic range, nearly 4x the resolution, huge optical zoom, a real flash and built in Image Stabilization. I can it in my shirt pocket.
I don't need a still camera to be connected to cell network...I need it to take better pics than my 9 year old P&S. I don't need a video camera on a soon to be updated 3G network to do that either. I need it to give great quality video of my kids at their church recitals with the ability to have optical zoom.
Still sounds like a 3Gs with the new Free OS Update with Skype is the best deal to be had. Take the money for the iPhone 4 upgrade and go buy a real camera that shoots much better HD video and call it a day.