The following is an excerpt from a longer post – "Google and Apple in Your TV".
Google Talk is compatible with Apples iChat AV messaging and video conferencing application and there has been rumors of video calls or video conferencing abilities in an incarnation of the iPhone.
- But where's the video camera? The iPhone only has a camera lens at the back. That won't work.
Some have pointed to Apple's patent for a technique that allows a camera to be hidden behind a TFT screen, others have claimed that the home button looks suspiciously similar to a video camera lens and that the button may be both a button and a camera.
In this video, reflections can be seen in the home button (at 1:37 and 1:50) that looks strange for a simple button, but makes more sense if it is a combined camera lens and button: (Rex Crumb from MarketWatch interviews Apple's Vice President of iPod marketing, Greg Joswiak)