Ignoring all 8 pages of off-topicness, and only a handful are getting it.
It does
not lack a camera because Apple is "purposefully withholding it."
It does
not lack a camera because of cost, although that is certainly a helpful factor.
1) The iPad doesn't have a back-facing camera because Apple does not want to be the company that sells the world's largest, most awkward camera.
Seriously, do you ever take pictures of people with your laptop? "Here let me take your picture! Hold on..." and then you whip out this huge, 10" slab and start aiming it at them? Ridiculous. It reminds me of sidetalking with the N-Gage: it's just ridiculously awkward.
2) There's no frontfacing camera because there is no elegant way to videoconference with something this large that can't support itself other than lying flat on a desk.
Sure, you could do this with a cell phone because it weighs nothing and can rest cradled in the palm of your hand. But do you ever really videoconference holding a laptop in your hand? No, because it's awkward. And that would still be better than an iPad because it can at least rest flat in your hand while you do it. The iPad would have to be "pinched" by your fingers as you held it up vertical. This simply is not practical. There's no way Apple could even demo this without it looking idiotic.
The only answer for videoconferencing would be some sort of stand, but that's very inelegant. Look at Steve talking about the iSight in this video. Appreciate how much time he spends crapping on even desktop mounted cameras. Of course he's not going to allow a ridiculously awkward camera experience that requires an extra stand on his product. Steve couldn't have even DEMOED the videoconferencing if they had it because he only had a couch and would have needed some sort of desk just to do it, completely missing the point of the iPad (a computer that doesn't need a lap or desk).
http://www.youtube.com/watch?v=yFG7szWEuhk
Simply put, a camera makes little sense from an interface point of view so they did not include it until they can figure out how do it right (a la copy-and-paste). And it simply might not suit a device like this, ever. Not appreciating this is why none of you work for Apple.