Adding to the growing collection of iPad 2 rumors, 9to5 Mac has done a bit of digging into the latest SDK to find a listing that says the iPad 2 will have a back-facing 1-megapixel camera. This is only slightly higher quality than the camera in the current-generation iPod touch. The front is suppose to be a VGA camera, just like the one in the iPhone 4 and iPod touch.
Sources have told the site that K94, the name of the folder where the listing was found in the SDK, is the iPad 2's codename.
As some of our commenters pointed out in Erica Sadun's recent wishlist, the purpose of the back camera might simply be for better augmented reality apps, or for use in Facetime to take a quick casual shot of your surroundings. As another commenter suggested, it would also be useful for taking inventory in a retail environment or scanning any number of barcodes -- and you wouldn't need a lot of megapixels for that.
Of course, like everything else released lately, this is still just a rumor. We won't know for sure until the magic unveiling sometime within the next couple months.