The Collaborative International Dictionary of English v.0.48:

Camelot \Came"lot\, n.
   See Camelet. [Obs.]
   [1913 Webster]

The Collaborative International Dictionary of English v.0.48:

Camelot \Cam"e*lot\ (k[a^]m"[u^]*l[o^]t), prop. n.
   1. The legendary site of King Arthur's court and castle.
      [PJC]

   2. Hence, any place or time thought of as having idyllic
      peace, justice, and happiness.
      [PJC]

The Collaborative International Dictionary of English v.0.48:

Camlet \Cam"let\, n. [F. camelot (akin to Sp. camelote,
   chamelote, It. cambellbito, ciambellotto, LL. camelotum,
   camelinum, fr. Ar. khamlat camlet, fr. kaml pile, plush. The
   word was early confused with camel, camel's hair also being
   used in making it. Cf. Calamanco]
   A woven fabric originally made of camel's hair, now chiefly
   of goat's hair and silk, or of wool and cotton. [Sometimes
   written camelot and camblet.]
   [1913 Webster]

   Note: They have been made plain and twilled, of single warp
         and weft, of double warp, and sometimes with double
         weft also, with thicker yarn. --Beck (Draper's Dict. )
         [1913 Webster]

WordNet (r) 3.0 (2006):

Camelot
    n 1: (Arthurian legend) the capital of King Arthur's kingdom;
         according to the legend, truth and goodness and beauty
         reigned there