Recent iPhone rumors and reports have almost guaranteed a new camera, and possibilities of new SKUs with 32GB capacities, coming out of Cupertino. But the newest rumor is of a 4GB iPhone with iChat AV built in. The only credibility of the rumor is from a leaked product roadmap from Canadian mobile carrier Fido, found by BoyGeniusReport.

As usual, with any rumor, leak, or magic beans sold to us by a guy with a wicked hat, we have our doubts. First, AT&T’s 3G network is already straining under stress of increased voice and data traffic, and keeping up with the load of millions of video conferences could break it. Second, the video chat would require a front facing camera, which would mean that traditional picture taking would be hard (unless you have xray vision and you can see through the back). Finally, if everyone started walking around staring at their phones, not only would pedestrian deaths increase tenfold, but drunk dialing would be THAT MUCH worse.

Of course, the iPhone could go the way of the Nokia N95, which has both a front facing, and rear facing camera. In addition, mobile livestreaming is not an impossibility, as shown by services like UStream.com and Justin.tv. And, let’s not forget, that the seeming limits of technology have never stopped Apple in the past, and if they do release such a product, it will definitely have a potent effect on the marketplace.