We can't speak to the cam's image quality just yet, but assuming its on-par with the D10, we'd say the latest D model is worth some serious consideration as an upgrade, even for a reduction in footprint alone.
As shown in the clip after the break, the high-res cam doesn't quite reveal facial features, but you can spot details like a bird flying around a building and the color of someone's clothes.
The 1.3-megapixel front facing cam obviously doesn't take as crisp or detailed shots, but it's perfectly fine for video chatting, awkwardly posing with a friend, or checking your teeth for leftover lettuce.