Considering that many phones now have 2MP+ front-facing cameras, this sounds unbelievable to me that they would put a VGA on this "cutting edge" device.
What is really great is to be able to look at your screen while you are snapping photos of you and a friend, and having a VGA camera is not going to give you good quality.
Also what about video calling and the people on the other side seeing grainy images?
Is this really happening??