Video calls are most often made with a desktop computer or laptop. Laptops have a camera at the top of the screen. Most Webcams are attached to the top of monitors. So you are typically eye level with a desktop webcam or just above with a laptop. That's a fairly natural position.
With an iPad it is most often put on a table, your lap, held in your arm on an armrest or your lap or propped up on your lap or chest when lying down.
All of these cases would have a highly unflattering view if using video. "Looking up someone's nostrils" is how I'd describe it. I could see it working in the keyboard dock, if you have that (which I don't) but that mimics a laptop setup.
I'm not saying they won't add a front facing camera but just think about the practicalities of it.
As for Gen 2, I've gotten so much use out of mine that I won't think twice about selling it to buy the new one. I simply use it that much that it's a complete no brainer. Few devices I own, other than my PC, get that much use.
I'd like to see more memory. Not because I need it but because more applications will be possible with it. I'd also like to see digital out. There is a VGA out connector but it's analog and has idiotic restrictions on it like you can't play iTunes video on it, I guess as an appeasement to the idiots at the MPAA.
But front facing camera? For me it's pretty low priority.
As far as form factor goes, there might be a smaller one. Rumours of a 7" iPad persist. I'm frankly unconvinced. Even if there was one I wouldn't buy one. A 10" screen for a portable device is truly wonderful. I'm not going backwards, I don't care how much lighter it might be.
And as far as Android/WebOS/Windows tablets go, my own view is that the competition is AT LEAST two years behind. Sure in the next 6 months you're going to see any number of crappy tablets coming out but it will be at least 1-2 years before they'll have the polish, battery life and especially the ecosystem of the iPad.