I have held off on buying the first iPad and was all ready to place my order for the 'ipad 2'. This news has stopped me dead in my tracks. I will wait for the iPad '3' (or perhaps the 6--I mean, maybe they increment the camera one MP for each iteration? You never know with those secretive Apple folks.)
Truly, this is shameful. If this is just conjecture (and we all know the history) perhaps some of you 'diggers' can scoop out the real story. Maybe it's incorrect (I did try a little petroleum jelly on my rear facing camera to simulate what you would see with1MP and folks, it's not pretty!)
If the lack of a hi def camera on the rear of iPad is going to prevent you buying one, then you don't understand what iPad is, and I'd advise nit buying one. For the sixteen million happy users who have iPad one, I wish you well firing up a computer just to check yr email or browse the web.