The Pre has a 3MP camera and enough hardware grunt to handle video recording—it just needs software. Homebrew coders have been working on it, and though it's early days yet, they've now achieved 320x480 resolution video at 30fps.
Recorded video is fairly clear and in colour (see for yourself below), but some video software won't play the file yet. VLC or SMPlayer should work OK, though. And given the Pre can reportedly manage 720x480 video at 30fps, they definitely still have a ways to go.
But overall, this is great news. And considering Palm's semi-support for the homebrew community, maybe an official solution isn't a pipe dream. In the meantime, you can grab the open source test application and try it yourself. You'll need to know what you're doing, though.