A new update from Fring is now available which legally allows video calls via the iPhone.  It sounds great up front, but does not allow the iPhone to transmit video, rather it allows for a PC or Mac user to transfer to you.  According to the developers it is only a limit of no front camera on the iPhone. The other catch is that you have to use WiFi to use the video feature.  Other than those limitations this brings us a step in the right direction of all future calls showing video if one chooses.  The app is free and is available now.