We've had front facing cameras for video calling in europe, pretty much standard for about 5 years or so now. Our networks are still up.
I've never actually used it, or seen anyone use it, but that's not the point, it was always tied to expensive video calling, if apple used it as a webcam for ichat, that'd be amazing, people might use it then.
That's what ATT is afraid of. They've already fallen for the iPhone trick once before.
would and could use the proximity sensor while typing to increase or zoom the keys nearest to your thumb or finger when reaching to press it. That would be a million dollar feature right there. At present the virtual keyboard only pop-up when you press it and defeats the purpose in usage, not to mention that others can see what key you have pressed when it pop-up.