What do most people miss on the iPad? I think it’s the lack of a camera/webcam. Apple could have included iChat (and maybe iMovie), so you can chat with your friends using the camera and actually seeing each other. All the while the iPad is resting on your lap without having your legs getting burned by the heat a laptop produces. The iPad stays cool (no pun intended) and is much easier to use with applications like iChat than a laptop.
Microsoft has build a prototype webcam. The Microsoft Webcam can be plugged into the iPad dock connector. Video is displayed through VGA with a 640×480 resolution. The production model should be a lot smaller then the one displayed in the picture of this article. There’s only one obstacle here: Apple. They need to approve an app that works with the webcam. So you can either use the webcam via the official ways or via a jailbreak.
Source: Pocket-Lint