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Rumor: HW4 can support up to 13 cameras

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Tesla's engineers must have decided that a side-facing camera integrated into the headlight assembly was just too prone to being obstructed by rain, snow and mud.
I'm guessing glare is a much bigger problem, plus retrofits will be a lot harder (fender cams are much easier to replace than a headlight).
A side-facing camera added to the repeater is better than nothing, but it doesn't seem like such positioning will significantly improve decision making when there's high speed cross traffic.
It moves the forward facing side cameras much more forward than the B-pillars, to even further forward than the A-pillar, to better simulate a human pulling their head forward to see cross traffic around a corner.

Solutions based on Mobileye or Nvidia mount a similar camera under the mirror (which also typically house a side parking camera).
 
You mean the retrofits Elon already said they weren't doing?
The current HW4 cars (Model S/X) don't have these new fender camera units yet, so retrofits for these cameras can still happen, even if Tesla doesn't do any HW4 retrofits to HW3 cars.

This design also opens up the possibility of a HW3 (or some future HW3.5) camera-only retrofit if that is deemed necessary in the future (although as I noted way back then, the camera signal cable is an issue they would have to address).

I would caveat this to say that this is still a rumor, I personally am not putting much stock in it yet until the pictures or video of the actual camera units are captured, given how similar rumors have been proven wrong in the past.
 
... doesn't seem like such positioning will significantly improve decision making when there's high speed cross traffic.
What makes you "seem" that? Higher resolution will help with the high speed. And closer to the front, further ahead then someone can lean forward is big improvement. Inches matter when sticking nose into oncoming traffic.
 
This newly posted article from notateslaapp discusses dual repeater cameras as part of hw4 and the Highland/Juniper redesign.

Exclusive: Tesla's Model 3, Project Highland Exposed: What’s Changing

I'll also quote this relevant comment about the repeaters and add some thoughts:
Tesla's engineers must have decided that a side-facing camera integrated into the headlight assembly was just too prone to being obstructed by rain, snow and mud. A side-facing camera added to the repeater is better than nothing, but it doesn't seem like such positioning will significantly improve decision making when there's high speed cross traffic.
I wouldn't be so sure that the second camera in the repeater will be only side facing. I don't know for sure, but it makes complete sense to me that the second camera will be able to look forward along the fender of the car.

This would take care of what I think is one of the most dangerous present blind spots: the issue of seeing oncoming traffic when you are trying to turn left with another left turning car in the median turn bay facing you. This is already a problem for a human driver, but at least he can lean towards the driver window. The centralized windshield cameras cannot.

Peripheral forward l-looking cameras on the mirrors or in the headlight area would have been even better for seeing past such obstructions, but the repeater location is still a big advantage over the present central cameras. However, with the repeater location it's especially important that FSD should pose the car relatively straight when awaiting a left turn, so as not to have the cars on front fender obstruct the oncoming lane vew. (one of the advantages of the headlight location is that the oncoming lane view is maximized for almost any left-turning pose angle of the ego car).

If the rear repeater camera sees straight back along the fender, and about 110° meaning a bit forward, then a roughly symmetrical front repeater camera could take in the view from straight forward along the fender back to an overlap region with the rear repeater camera. I would think that both of these would also see the ground for parking purposes.

This begs the question of what the pillar camera is then needed for. I think that even if the front and rear repeater cameras overlap, the pillar would still contribute its undistorted non-overlapped side view, also biased more for the upper vertical region and not the curb region. These pillar cameras are presently slightly mysterious because we don't get to see them in Sentry or Dashcam views, but apparently they're being kept in HW4, l so presumably they continue to be fairly important in FSD.