It looks like Apple is working on a new function for the Camera.app. Offering settings for a grid and HDR when creating a a panorama photo. To enable Panorama mode, you need to set the key “EnableFirebreak” to YES in com.apple.mobileslideshow.plist.

Chpwn pushed a new package in Cydia called Firebreak, that does everything for you and enables the feature, which appears to be in ongoing development by Apple. Firebreak is available for free in Cydia via BigBoss repo.