Surprising absolutely no one, Apple's iPad 2 features front- and rear-facing cameras. The rear camera is capable of recording 720p HD video. And for $5 you can buy the iPad-optimized iMovie for editing and sharing your recorded video directly on the iPad.
The iPad 2's video recording potential is intriguing. Having a 9.7-inch screen for video recording, instead of the much smaller LCDs on video cameras and smartphones, is huge (literally). Imagine how much easier it would be to frame a scene when you have such a big canvas to work with. And imagine how appreciate over-40 eyes (like mine) will be, not having to squint to see what the heck you're supposed to be shooting. Also, the iPad 2's purported 10-hour battery life will be another advantage to videographers in the field. Not many camcorders or smartphones can offer 10 hours of battery life.
Of course, holding up an iPad 2 to record a video would not only look dorky, it would most likely make your footage shaky. So I expect we're going to see a lot of iPad 2-compatible tripods coming out in the coming weeks, similar in concept to this iPhone 4 tripod.