I don't think the camera would be outward facing, like the iPhone. Instead it would likely be inward facing for video conferancing, mostly in the vertical postion.
It 'could' be in generation 1 if they are having us on over the specs. It would be easy to hide the cam on demo models with case that didn't have the hole. Unlikely but possible.
I also bank on an external attachment for the whole iLine of handhelds. To bring video conferancing to current iPhones and iPods, along with 1st gen iPads.
Those of you with iPhones and Pods. Please hold your device up to your face acroos the eyes in a horizontal position. Note the placement of the outward facing iPhone Camera... now imagine adding an attached cam on the other end pointed outward... Just about the span of your eyes yes
? Now think about a video recording program that can take dual video streams... iVision amature 3D video recording here we come. Add Bluetooth Stutter glasses to the iPhone/Pod/Pad drivers and welcome to the next wave of Youtub/AppleTV.
Not the best I'll grant you that but it's better then tapeing two cameras together.