A patent from Apple incorporates the camera into the screen:
"An integrated sensing display is disclosed. The sensing display includes display elements integrated with image sensing elements. As a result, the integrated sensing device can not only output images (e.g., as a display) but also input images (e.g., as a camera)."
Bloggers comment that the device would work like a telescreen described by Orwell in 1984.
-- via Digg