I held off on the first iPad because I was disappointed that it didn't have cameras. NOT because I wanted to use it as a still camera or video camera, but because I wanted to be able to video chat. For Facetime, Skype, Tango, whatever, the iPad 2 cameras are totally fine. Facetime is probably the smoothest video chat experience I've ever had, and I have used it on my iPad 2 more in one month than I have used it on my iPhone 4 in a year.
iPad 2 is perfect for video chat. If I want great looking stills or video, I reach for my iPhone 4.