It's fine for Skype and Facetime and that's the only reason I want a camera on a tablet.
I've got my phone and a digital camera for taking still photos, and never cared about taking videos.
I mean sure, it be great to have better cameras. But I don't care much as it's at least as good as the camera on my laptop that I was using for skype before.
im kinda in the same boat....i think the quality is pretty good when using it for facetime and skype and we use the skype feature EVERYDAY.