The iPad 2 does have front and back cameras but they were put in really just to 'keep up with the joneses'.  In other words, they are functional,  but not spectacular and certainly not as good as the new 5MP rear camera that is in the 'New iPad'.  However for general facetime chat the front camera should suffice for VGA resolution and the back camera is capable of 1280 x 720p video which is not bad for video, although not great for still shots.   If taking pictures is really important for you on your iPad then spring for the extra $100 and go for the 'New iPad'.  The cameras are much better, especially the back camera which has multi glass optics and backside illumination similar to the camera in the iPhone 4S, although not 8MP resolution like the iPhone. (still 5MP isn't bad for a tablet camera).