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.