Amen to that....
It's not a good picture taking device and never will be. Neither is a netbook or laptop. The iPad is a second device to carry with your phone (no, it's not even a phone). If you are mobile and want pics, use a real camera or, for less quality, a phone.
I'm sure Apple tested an iPad with a camera and decided the experience was less than stellar. You'd have to hold the iPad with one hand, compose the shot, then click on the iPad screen to "snap". The iPad is a bit heavy for one hand extended out to compose a shot. Clicking with the other hand would then shake the camera.
My Wacom Bamboo is a little bit smaller than an ipad (and a lot lighter too). I held it up and make believe I was taking a picture. Awkward with such a large device. Now add in the larger size and weight of an ipad.. I agree. I use my iphone around the house or if I see something while I am out, and I use my good Nikon Pre-DSLR when I am on vacation. Both are pretty good.
I think the only good a camera on an ipad would be, is for video chatting. Having said that, I only video chat maybe once a month. Nope, I think Apple got it right.
The only thing the iphone lacks for me is good zoom (even if only 3x digital). But other than that, and with the enhance feature in iphoto, my pictures from my phone are still pretty good. like i said, if I am on vacation in the mountains, the coast, a cruise or some city I never been too..... that is what my pre-DSLR with 18x optical zoom is for. I have 7,000 photos, and even the iphone can take good enough pictures for printing and posting on the web.
There is no need to a camera in the ipad, other than front facing for skype / video chatting. but then again - with it being a lap device, you would have to put the ipad on a stand or dock to have it facing you. otherwise good luck with trying to keep it in position for video chatting. the ipad was meant for mobile computing (like a portfolio PDA - but better), a media consumption (although there are good apps for media creation), and for reading digital print.
I like the ipad the way it is, and it will replace my macbook on trips. And for those whining about lack of USB and SD port (and having to use a connector). Oh well. if they added USB, many people would try plugging in something that the ipad was not meant to do, and therefore Apple would get all the calls.