My ipod was stolen, and using icloud I was able to track it. I used the "Lock" function, but I'm wondering if it would have been possible to take a picture using the front camera.
No, that is not possible unless you had jailbroken the device and installed that capability beforehand.
Unfortunately, there are some limitations on what type of tracking can be done through iCloud services. If you see the general location, I could try to narrow it down as much as possible, or see if there's a movement pattern...possibly someone going to work.