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I don't see whats so bad about the still pictures from Engadget's review. For such a low resolution, they look great. They're the perfect size and quality for quick Facebook or Twitter updates. Which is exactly what they were meant for.

The raw video file they posted looks fantastic too.

Overall, despite the low resolution, the camera is good. Yes it should have been higher resolution. But its 100x better than nothing. Especially for those who want an iPhone but don't want to spend the couple thousand dollars for AT&T service over the course of two years.

If I didn't already have an iPhone 4 I'd get one and be perfectly happy with it.
 
I still don't get the complaining, of course I don't have this yet, but don't forget the other things you can do with the camera like apps that use it will now be available to touch users. As for the pricing, would you rather pay $299 for last gen's 32GB model with no cameras and a lower quality display, or pay the same price for this year's upgraded model. If you want a cheaper price for an 8GB than $229 go out and buy last year's model used or a brand new one off ebay for a lower price. I still think they could have given us no cameras and just updated the display, ram and a few other things and called it the new touch, and people would buy it just as much as they would if it had all the stuff that the new touch does have.
 
I still don't get the complaining.
It's really quite basic: 0.7 MP is really old technology. Any device that has a camera feature is larger than 0.7 MP. Maybe it would've been better to have no camera than one like this?

Any way, the real question one should ask themselves is how often do u take pics with your smartphone or device and what do you do with it. Apple probaby surveyed people or did their own research and showed that most people use the phone or device to upload directly to twitter or facebook. It doesn't mean that everyone's needs are like that. Everyone's needs, wants, and expectations is different.

People can debate, discuss, or rationalize endlessly the touches 0.7 MP lens. I don't see any person being more right (or wrong) in their opinion than the person taking the other side.
 
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