Hi Kirsten,
I have to agree with everyone here. Accept the camera, this offer is coming from your friend's heart because she cares about you. Your PT friends look forward to all the pictures you so graciously share with us, your visit to the zoo, the countryside, and I remember the pictures of your town - looking at them was like actuall being there with you.
And you DO deserve this and every other good thing that comes your way. You have always come through as a kind and caring person, there's no question that if things were reversed you'd be doing the same for her!
I hope you'll let us know what you decide to do.