YourDailyMac posts their predictions for MW Tokyo... and publishes a supposed email referencing a 4megapixel Apple Digital Camera:
Apple is currently working on a 4 megapixel digital camera. I have seen the prototypes and it rocks. It has firewire connectivity along with a crisp 2.5" display. But the thing that I loved about it was that it doesn't use floppies or crappy flash cards. It uses the same hard drive that is in the iPod. That's right a 5gb hard drive is inside this beast.
Many have speculated about Apple's future digital devices - and with no other sources... this may simply be further wishful thinking...