Possible confirmation of a Photo Stream service in iOS 5 has come after users spotted hidden references to the service inside the current version, iOS 4.3. We wrote about it a while ago here, but now a 9to5Mac reader has come across it while using a third-party app to browse his iPhone 4 photo albums.
The expectation is that Photo Stream will work for your photos in Photos.app the same way Playlists work for music in iTunes, allowing you to send albums of photos to friends. Its background appearance in iOS 4.3 may indicate that it was pulled at the last moment and will instead be part of the major iOS 5 upgrade, which is rumored to be out this fall.
Hopefully, Photo Stream will indeed make it into iOS 5. Sharing your photo albums via a revamped MobileMe with your friends and family, all in an easy-to-use Apple fashion, would be a great feature.