Yes but 5MP so no good, with space inside it should have been 16MP minimum like on one of HTC phones.
As a sofa surfer, the iPad's great. From nothing 3 yrs ago I've ended up with tons of apple kit (and some windows and a smattering of linux) and really rate it. I still love my 'retro' first gen iPad. I've never felt the need to upgrade, who needs a camera on a device that size? Don't skimp on storage though, especially if you go for a 2nd or 3rd gen iPad.
As long as you're happy that's the main thing. I have the iPad2 (using it now) but I couldn't justify the price of upgrading when the 3 was launched. There just wasn't enough of a difference for the price.
That was the conclusion I came to, having done all my research. Not worth upgrading to but, if like me you are an iPad virgin you may as well get the 3.