It's like the old science-fiction predictions of telephones with live 2-way video. The technology exists now -- in fact, it's been around for at least the last couple of decades -- but how many people use video for everyday phone conversations? There's simply no need for it. The telephone was invented for voice communication, and that's what we still use it for.
There are plenty of "needs" for it in specific functions and instances, such as teleconferencing, where it's quite common and where you are already dressed presentably. Telecommuting to work is also catching on. I'll avoid going into porn. And while it's not two-way, tons of people use the camera on their computers, phones, and other devices to upload videos of themselves to YouTube and so forth, which is no different from a videophone in terms of how you look onscreen.
The reason it hasn't caught on with the public at-large except as a novelty you quickly get tired of* is mostly vanity related (* I Skyped about five times, and then just to say "Hey, I can see you! Can you see me? Okay, that was fun... now what?"). Most people don't want to have to be presentable and blemish-free 24/7 to an extremely close-up camera just to answer the phone.
For scifi related examples, think of the lovely view up Burke's nose while he was half-naked and half-asleep answering Ripley's middle of the night videophone call in Aliens, and what she must have looked like in her sweat-soaked tank top and mussed up hair. Think of the topless woman accidentally calling the wrong number in Demolition Man, which I'm sure was great for him, but embarrassing for her.
That's why videophones remain mostly a quickly forgotten novelty in the general public, because most people don't want to have to deal with that kind of crap every day just to handle basic communications. It's not that they have no use or need whatsoever. Hell, to take it a step further, most kids bypass even the voice communication and go right to texting each other instead, so even two-way voice communication is on the decline.
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