Apple has been known to limit developer access, but in a surprising move, these trends seem to be on the decline, and this's exemplified by a few recently approved applications that make use of iPhone 4's front-facing camera and LED flash. Apple has approved several apps that uses LED flash as a flashlight.
"Fring, approved for App Store offers free video chat, and the real stand-out feature is that it works over 3G, whereas FaceTime only works over wifi. This opens up the floodgates for bigger players, such as Skype, to bring their iOS offerings to parity with their PC and Mac counterparts."
More Info: iTune