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Many phones offer 10+ megapixels in their back-facing smartphones. Many offer front-facing cameras to support third-party applications like Skype and other video-conferencing services. With so many using their iPhones and iPads as alternatives to traditional cameras and DSLRs for ease of use and simplicity, Apple need to pander to the wishes of the photo taking collective and boost at least its back-facing camera to 10+ megapixels.
Apple already has to stretch its resources with the limited depth of the iPhone, just over a third of an inch. It would be difficult, but not an entirely out of the question request for a boost in resolution for image capture.
Image source: Apple.