> And the next logical step would be a virtual dressing room
Another logical step might be skin-cancer screening (surprised that, in 300-ish comments, no one seems to have thought of this), assuming the camera's resolution and/or back-end image-processing software could be made good enough to pick out moles, etc. After all, the camera could take full-body pictures of front, back and sides very easily. Then, if anything odd shows up, you could perhaps ask the user to do a close-up shot of the affected area for further examination and/or just be told to go see a dermatologist.
While fully-naked shots would be best for this -- with all the attendant privacy/HIPPA/etc. issues -- I'd expect even doing this while in underwear/bathing suit/etc. would still be a net-win since you'd be able to examine around 90% of the body and you could do it regularly. How often, after all, do people normally get any kind of dermatological exam?
(Mind you, a dedicated device for skin-scanning might be best, but, as they say, the best camera is the one you have with you -- if this sort of device becomes popular, then it might be good to make it work for this vs. letting the perfect be the enemy of the good, as they say.)