ksv - i think you've missed the point a little.
the image i made is grainy - thats because i made it very low res on purpose so i could transfer it from my fone fast - get it up on the net quickly - i think it was actually VGA quality i had it set to!
but... the camera is 1.2 mp - and the full size images are great quality - below is a link to an example - i'm sure you'll agree theres not much grainy about it. And considering it was taken whilst walking forward, strong sunlight - the exposure is pretty great too! and the videocamera is is just as good! i'd show you a range of pics but most have people in (including myself!) them and i dont think it would be fair or right to post pics of people without permission.
and there are already higher Megapixel cameras coming to market in even smaller form factors.
thats what i'd see as a built in option... jobs at '06 keynote? well considering in the space of around a year and a half we went from VGA to megapixels - '3/4mp camera with 'basic' (basic for 2006!) but pretty damn great video capabilities too - built in - right there for you to use. you want fullscreen beautiful video? the get the isight (which by 2006 will no doubt be even better too!)' - its a great upgrade path!
i.e. - i used the internal mic for a few weeks with skpye - in the end i wanted a better solution - so i went and got a BT headset. The initial solution inbuilt did the job, it introduced me to new tech and pushed things forward.
also - there are camerafones on market that already employ high quality cameras that 'swivel' on the hinge - so the tech has moved on considerably since the sony laptop.
as a concept / idea - its possible - i'm pretty sure that if Apple could offer the solution in the same way as they do their internal mics, lowcost, unobtrusive, standard - no-one would complain! and by '06 onwards we might have isight quality cams the size of the ones currently in fones! who knows?!
High Quality Pic Here