This would be pretty sweet...

 

Alexander Wolfe, from InformationWeek, dug up these sections from the patent that clearly explain the video capabilities of the iPhone. Perhaps the iPhone that a lot of people have wanted is finally the works.

“The device supports a variety of applications, such as one or more of the following: a telephone application, a video conferencing application, an e-mail application, an instant messaging application, a blogging application, a photo management application, a digital camera application, a digital video camera application, a Web browsing application, a digital music player application, and/or a digital video player application.”

http://www.crunchgear.com/2009/02/02/a-video-conferencing-iphone-in-the-works/