More rumors out of the supply chain today suggest that iPad 2 might indeed have a camera -- front and back, actually -- and once again a better resolution display is being mentioned as well. Kelvin Soh and Argin Chang, reporting for Reuters, spoke to four people "familiar with the situation":

Two could only confirm they were ramping up for a new round of production in the first quarter for components previously supplied for the original iPad, while two said the ramp-up was for a new iPad.

One of those said the revamped model would feature cameras on the front and rear, while the other said the new model would be slimmer, lighter and have a better resolution display.

I'm sticking by my *Imagining iPad 2" predictions for now. 2 cameras, not as high end as iPhone 4, but giving the ability to FaceTime and switch between self-portrait and world view (hey! Look at those kids!). Still don't see a higher res screen because there's no way a 2048 wide display at iPad size is feasible and anything less than same resolution or pixel-doubled would be a nightmare for developers.

What do you think?