It would be extremely helpful if the emulator could use webcams as camera emulation. Otherwise AR scenarios are hard to develop without a range of devices. It has become even more needed with the addition of WXGA and the different scalings in WP8.
Allow the developer to specify a special Picture folder from the emulator Additional Tools then the Camera Emulator Driver will pick random or round-robin picture to emulate the camera capture, this will be very useful especially for image processing apps.
I would be happy if I could load pictures as camera snapshots into the emulator