The Boy Genius Report has published two screenshots that seem to confirm video conferencing capabilities in the upcoming iPhone HD. The screenshots depict video call debugging options in the settings app and are were supposedly taken on a field test unit.
Quite honestly, video calls sound like a big waste of time. I don’t see why everyone has wanted the feature for so long. A front-facing camera only has one appeal to me, and that’s self-portraits. Taking a picture of yourself and a friend would be much easier if the screen was facing you.