I've mentioned in posts a few years back about TV manufacturers that were developing pixel cams like that, and how that would be the end of privacy in the home. First I've heard about Apple or any other phone manufacturer doing it, though. If they follow through on that, that would be the first iPhone I refuse to buy. Right now its easy to defeat this stuff - put a piece of tape over the front camera and dot it with White-Out. But if you can't even find the camera because its blended in between the display pixels, what then? Pull the front glass off your brand new phone and see if you can figure out what traces can be cut without destroying the display?