Ok - so what's the skinny on keeping the pixel number the same? The ppi would have to be outrageous

Faketastic.
Nah, many other phones (although mostly unreleased in the US) have half-VGA, VGA (640x480) and even wide-VGA (800x480) screens above and below the 3" size.
all the rumors about 2 way video it can't happen at&t does not have that on the roadmap or budget. Don't think 3G means video it will provide better data speeds that is all. At&t is still about a year or more away. Sorry all it helps to have inside info. The only thing even deployed on the network in about 10,000 people with handsets that will do one way video. Meaning I'm holding a 3G phone with a camera and I can transmit my image but I can't see you.
AT&T will not have video 2 way HSDPA or not this year. It is not able to be deployed on the network. And they are behind on several things to enable it. Europe and Asia oh very possibile. But it will not happen. Sorry to disipoint you all, btw At&t is not even convinced to ever offer 2 way video streaming like in the eu.
Video is DATA, and Voice is data. you shoudn't need any type of special network to do general video calling. All that has to happen is to combine normal video transmission over the data network with a normal cell phone call. Due to the fact that UMTS phones can maintain a data connection while also on a phone call, I don't see why this would require any type of special equipment or carrier intervention; nor what it is exactly that you are referring to AT&T not being capable of.
Assuming the next iPhone (or current one with a software update) supports video recording, there is really nothing stopping someone from writing software that:
1) Inititates a data connection over the web to another phone via an intermediary server.
2) Begins streaming video from the camera in real-time to the server.
3) Initiates a standard phone call (audio) to the receiving party.
4) The software on the other phone, having received notification, would being streaming it's video to the other party.
BINGO! full-duplex video calling.
On the other hand, an even easier way to accomplish video calling is by coupling your video streaming with a standard VOIP connection --- utilizing VOIP for the phone call/"audio link". Again, The iphone would just need to support video capture from the camera and a simple VOIP functionality (which it already does). Everything else is straightforward and can be done in software.
1) Software app initiates data connection to VOIP/SIP server (aka skype)
2) Software app initiates video capture and streaming to server
3) Software on the second phone receives the VOIP connection, and beings streaming return video
This would accomplish the same effect of standard video calling, the only difference being that you would "dial" the other user through the VOIP application, instead of using the actual phone part of the iPhone. VOIP + video streaming for video calling is especially important give that I have seen how AT&T markets their current one-way "video sharing" nonsense. You actually have to buy a chunk of "video share minutes" from AT&T for the "privelege", EVEN IF YOU HAVE AN UNLIMITED DATA PACKAGE. I'm really sick of that type of ******** nickel and diming. I can't even see that being popular if they are going to charge those types of rates.
On a similar note, AFAIK, AT&T's current UMTS/3G rollout is limited to HSDPA (aka fast, low latency, downlink) and will be rolling out HSUPA (fast, low latency uplink) sometime this year. So for now, UMTS/3G data uploads are limited to a possible maximum of 384kbps. Although that may not be ideal for good resolution, 30fps video calling, it should definitely suffice -- and would be 2-3X better than EDGE.
Yeah, 'cause iPhone doesn't ALREADY HAVE A CAMERA. Good Lord. The camera in the iPhone will support video recording even if EDGE is not the best mobile medium for video chat. It's just the software doesn't (yet) support video.
.... It's been built into laptops and iMacs for years and no one really uses it....
And how exactly would you look at your iPhone screen while the existing rear camera is pointed towards your face? Video calling is popular in Europe and Asia, and most 3G phones have a secondary forward facing camera. the carriers in the USA actually make the device manufacturers remove that for US models.
As far as your "no one uses it" statement, I'm getting sick of pointing out the absurdity of using superlatives and absolute statements on this forum.
The adoption rate of "free" voice and/or video chat is not what was expected; that's been studied and documented.
What exactly are you referring to? what is "free" voice chat? If you are talking about computer applications such as skype that combine a chat application with free VOIP "internet calling", then I'd have to say the 80+ million users of Skype ALONE would disagree with you.
Besides, cellphones are an entirely different medium than desktop/laptop chat and video calling. I mean, it's PRIMARY PURPOSE is for remote phone calls. So obviosly, an average person would be much more inclined to use VOIP and Video chat on their cellphone than in an akward headset setup on their personal computer.
And actual, not theoretical, 3G throughput in the States remains poor compared to the EU, not much better than 2.5G (EDGE); and even worse, coverage is sorely limited. They may not even allow iTunes Store purchases on 3G in the States -- in fact, calling it the iTunes WiFi store would tend indicate they won't
I would have to completey disagree. Do you actually have experience with 3G data service in more than one location? I'm been using 3G phones and laptop cards for a few years, and I definitely get a better data rate than any EDGE service. In fact, it's quite easy to get 500-900kbps downloads, and 300-500kbps uploads. And apparently, I'm not alone. go look at DSLreports.com and look at their mobile phone network speed tests from site users.
Regarding 3G coverage, ATT's has been lacking in the recent past, but they have been improving tremendously in the past year. CDMA 3G service from Verizon and Sprint is much more widespread. The situation is certainly not as bad as many people think it is.
I can certainly see Apple releasing a feature in the 3G iPhone that will play okay in the States and well in the EU, but not a 3G iPhone with a feature that will go down like a lead zeppelin in the States, but do well in the EU.
... At any rate, my main jab was at the "if the new iPhone has a camera, that's worth waiting for" remark someone posted. It's not properly positioned for good video chat -- really, it would be silly -- and it can however does not yet support video, but the current iPhone DEFINITELY has a camera.
Can you predict the stock market as well? AFAIK, 2-way full-duplex video calling has NEVER been offered on a cellphone in the United States. I think if they prices are reasonable, it may be fairly popular, especially among youth and young adults. I do however think It will definitely be much more popular when utilized as a
VOIP "video conferencing" service used over Wifi ala Skype. In that case, it should be FREE after a software download.
[Video/voice chat adoption may be a generational thing. I'm 40, and everyone I know well, roughly 27 - 45, we grudgingly use text-based IM chat for quick convenience, no voice, no video, even though almost all of us use modern Macs with requisite inbuilt hardware -- we're all writers and/or musicians, or film people, and a couple physicians and attorneys -- and we type, rather inexpediently, in complete, complex and compound sentences. We even type corrections to our grammar and spelling when we catch it. By our ages and professional/educational backgrounds, we're a crowd accustomed to e-mail, a technology which is in essence just a really, really quickly delivered letter.]
At least you recognize you may not be the best source to speculate on the popularity of new technology trends. I'm never seen numbers on the users of Mac iChat video conferencing, or any video-conferencing in general, but I do know VOIP is very popular and video VOIP is a natural extension of that. Even more imporant, as I previously mentioned, is that VOIP and video calling has not been something that's been readily available for average cell phone users. Its yet to be determined how popular a simple to use, iPhone "iChat" or Skype-based video calling solution would be.