[jmcnevin]

They must have had some room to spare in that case to bother putting in a rear camera.

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?

[jonknee]

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.

[FiddlerClamp]

Augmented reality apps.

[ugh]

You can hold the iPad the other way around so that the camera is on the top, away from your hands.