This has been report by at least 3 people already including erick and me. I have also opened up a bug for this crucial issue. Hope this gets fixed soon.
Glad to hear that! Will there be any way to apply that fix to projects using older versions of Unity (like 3.5 or 4.0.1)? I really don’t want to redo the lightmaps on everything just for this fix. (They’re not simple.)
For those not willing to upgrade a 3.x project to at least 4.2.2 I can report that the LiveTexture plugin from Prime31 works flawlessly on ios7 and function almost as the WebCamTexture. There is no pause on their version but it is rather fast at creating and destroying it.
Did initially start converting my project to 4.3 put after one day of porting scripts and figuring out how SetActive works in the new Unity , I realized that the entire xcode project structure changed in the new unity ruining most of my previous work I gave up. Made the project run with my native ios UI but then I had problems with orientation, GPS and compass scripts in Unity. Will not recommend anybody to convert large ios Unity projects if it can be avoided.