The only real evidence supporting an external iSight update is the fact that it was pulled from the EU markets, correct? And it was only pulled because of the mercury content issue, correct? So there really isn't any evidence anything will happen with it aside from getting de-mercuried....
But it would seem like Apple would go to 1.3 or 2 MP's across the board at some point....
Question... photo booth is just software right? so how come there arent any 3rd party or apple updates for it? such as new features or more importantly, new effects
I wouldn't see much reasoning in updating the isight anytime in the next few years really. Other than the goof-off photobooth (which is pretty cool) the isight's real purpose is video conferencing. Tell me how you could ever push an HD signal in realtime over consumer broadband without reducing the quality to the point that it becomes pointless. 640x480 on h.264 is pushing it sometimes.
I could maybe see a format change to widescreen (a welcome change) and a possible bump to 720p at the most (and that's a real stretch). 720 would have to be scaled down for internet transmission, though.