There is no way to adjust the setting in the camera app to do what you want to do.
It is my belief that the primary reason that Apple puts a camera on the iPad is for for using FaceTime. The fact that you can take still photos with the iPad just makes it a bonus feature - again - IMO.
Frankly, I think that it is absurd to expect a tablet to take the place of a camera - for taking still photos or for shooting videos. The device is too large and unwieldy to be using as one's primary camera anyway - IMO.
OK I'll give it to you with the ipad being a big clunky camera, but what about the iphone? I've taken many pictures for people who hand me their iphone and the same exact thing? So nobody uses their phone as their primary camera either? It's a Apple issue, not limited to the ipad, It' not like it would be some serious hardward fix to add this feature, it's a software setting. I don't see it as a bonuse in anyway, my camera on my computer which is for Skype takes a still photo and it gives me a nice little preview so the whole facetime thing doesn't make sense either. No biggy..
Thanks for answering my question though saved me tons of time and frustration looking for the setting that doesn't exist.