I imagine it will be most useful in FaceTime when you want to show the other person what you're seeing and also be able to see them at the same time.
Re:IPad 2 Official Specs
by FiddlerClamp on Wednesday March 02, 2011 @07:09PM
(#2282068)
Augmented reality apps.
Look at the screenshot of the camera app: http://www.apple.com/ipad/built-in-apps/camera.html
Notice the placement of the "record" button. Now imagine holding the device up to take a picture with two hands.
Even assuming another app developer will come along and fix this, who's going to use a tablet as a giant, awkward digital camera?