Apple's saving money, and I'm not offended--the iPad at $499 is a cheap price, and I'll really only use the camera maybe 1-3 times a week; they put their money in things that you experience constantly, like the build materials and weight, battery life, the IPS display that you're always staring at, and hardware that keeps everything running fast and smooth.
But arguing that this is never needed and doesn't need improvement, and is not available with current tech puts you in a hole if 6 months from now the iPod Touch gets upgraded with better cameras (that then turn up in the iPad 3).
But arguing that this is never needed and doesn't need improvement, and is not available with current tech puts you in a hole if 6 months from now the iPod Touch gets upgraded with better cameras (that then turn up in the iPad 3).