Does iPod Touch 5th gen 16GB (mid 2013) still have built-in Camera app for use with front-facing camera?
The answer is yes &mdash; the iPod touch 5th gen 16GB does still have the Camera app. Here's confirmation direct from Apple's recently-updated iPod touch manual:


iPod touch User Guide - For iOS 6.1 Software (June 2013) [PDF]


In Chapter 9, "Camera", on page 54, it states:


  With iPod touch, you can take both still photos and videos, using the
  FaceTime camera on the front or the camera on the back (available on
  some models).


There's also an accompanying image showing the built-in Camera app's user interface, and notes indicating controls for the flash and to "Switch between cameras" may not be available on some models:







Finally, I've also learned that third-party apps that use cameras on iOS devices should continue to function provided they use the iOS APIs correctly &mdash; as demonstrated in Apple sample code &mdash; to query the device for camera capability and the available cameras.  (When a third-party app assumes a rear-facing camera is always available on a camera-supporting device, such an app won't necessarily operate correctly on the iPod touch 5th gen 16GB.)