MacRumors and other blogs report that Apple’s iOS 4.3 Beta 2 includes FaceTime, Camera and Phone Booth apps. Mac users are familiar with the desktop Photo Booth app which uses the web cam embedded in iMacs and MacBooks to take self portraits and apply various photo effects.
The natural assumption is that this means that the iPad 2 (or whatever it is called) will include a built-in camera or two (front and rear facing).
There is another interesting notion to consider: While the desktop (and notebook) Macs gained its own app store, Apple and other developers have been introducing more and more apps that are either direct analogs of desktop software. Photo Booth, if it appears on the unannounced iPad 2, it will be yet another desktop application that crossed over to the iPad.