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If so, this could allow front facing cameras and webcams to be placed dead center of the screen, allowing 0 bezels without awkward camera placement like Dell XPS has.

The entire screen would have to serve as a sensor, the pictures will have the same resolution as the screen.

Sounds like a pretty good idea for a tv display.

Something something, Nineteen Eighty-Four.

Interesting idea,although consider density. A Micro 4/3 camera sensor used on the popular Panasonic GH5 video camera is tiny but captures 4k video, displayed on screens far far larger.

Micro LEDs would need to be far, far smaller to be used as sensors.

Why?

Because optics increase in size with sensor size. The lens for a TV sized camera would be gigantic.

Ok, so it's not about sensor size, it's about lenses. You don't really need lenses though: https://petapixel.com/2017/06/22/caltech-made-sensor-lensles...

(also see links at the end of that article)