We have seen some of the concept (made into a video) of iPhone 4G, and it seems the front-facing camera is getting a spotlight and everybody who use iPhone would love to get this update on the next generation of release.
This is still a rumor, however, there is a strong fact supporting this matter. According to Apple Insider, the rumor appeared because of Apple newly revealed patent application which has been entitled as “Apparatus of Method for Compensating for Variations in Digital Cameras’.
This Patent application talk about how to improve the camera modules invested in the current iPhone and iPod models, which probably will lead to a better solution for users and getting a front-facing camera here is highly possible. But rumor remains a rumor. No certainty yet on this matter so you shouldn’t hope so much on it.