However, to enable the hidden feature your device needed to be jailbroken. But as it turns out, you can actually get panorama mode working on your iOS 5 device without jailbreaking it.
As the folks over at 360cities found out, there’s a way to do this by fiddling with your iPhone’s backup file and then restoring it. As the video below shows, you will need to install the iBackupBot application (needless to say, you need to proceed with caution).
The 360cities guys also show the feature in action, in case you hadn’t seen it yet. They’re using the camera app with panorama mode on an iPhone 4S, but it should work on an iPhone 4 and iPad 2 as well (feel free to let us know if it does or doesn’t in the comments).
Also note that the panorama feature is apparently quite clunky in its current form, which is probably why it hasn’t been publicly released or touted by Apple yet.