Did Apple reject Google Latitude from the App Store because they're getting ready to launch a similar service of their own... that also uses a front-facing camera? Maybe, maybe not, but Patently Apple found this latest application, and 9to5mac seems to think it's a possibility:
In Apple's implementation, it looks like the location data can be carried in an SMS or Instant Message (interesting news in its own right), which can then be opened in the Maps application to show the other person's location relative to the iPhone user's. Also, note what appears to be another instance of a front-facing camera on the iPhone image below. We're calling it now: iPhone 4G (and tablet + maybe iPod touch) get front faing cameras. Who is with us?
We are. At least it makes sense in the iTablet/iSlate, and it's always near the top of new iPhone hardware feature requests (though would it be WiFi only to prevent AT&T towers from melting?)
Of course, our wishing has never, not ever, made Apple make it so...