Im pretty sure apple wants to wants to use video conferencing in the next major release of the iPhone. Something much bigger then the 3G. To me, its pretty obvious. Gone is the 8gig replaced by 16 and 32gig models. The camera will definitely be replaced with something like 4 or 5 megapixel. I think the rumors about the video conferencing are true and that will be the major selling point for the next model.
Doubt we will see any changes to the camera in 2.2. I think they are holding out for a new iphone. That way it gives people a reason to upgrade.