There is a hidden panorama mode in the iOS camera app which lets the user capture panorama photos. This hidden feature was discovered by conradev a developer and hacker, by changing a key value in the iOS SDK. It is still not known why the feature is hidden in the app but we may soon see a panorama update to the camera app.
chpwn has released FireBreak jailbreak tweak to enable Panorama Mode in on jailbroken iDevices and is available in Cydia. video on how to enable hidden panorama mode.