Yes, I realize I'm updating a two-year-old thread, but I found a solution that might help others.
Pi camera works fine when system first booted. After about 10 minutes it hangs on capture using raspistill (with the camera's red light solid on if enabled). Cannot use camera again until system is rebooted. Immediately after reboot, it works fine for about 10 minutes again, then hangs again on capture. Rinse and repeat...
Raspberry Pi 2 model B, camera version 1.3 purchased on eBay. Ubuntu 16.04.2 LTS.
When it hangs, the last few lines of output are:
Starting component connection stage
Connecting camera preview port to video render.
Connecting camera stills port to encoder input port
Opening output file image.jpg
Enabling encoder output port
Starting capture -1
The solution that worked for me: adding the following to the list of kernel options in /boot/cmdline.txt:
Even though I'd specified the "-n" (Do not display a preview window) option in the raspistill invocation, it's apparently still tying itself to the Linux console in some way. As soon as the console screensaver kicks in, the freeze occurs. BUT - if you have a keyboard connected and you press any key, the screensaver stops AND the capture finishes!
I normally run my Pi "headless" (no attached keyboard, mouse or monitor), and there's no way to deactivate the screensaver from an ssh session, so it appeared that they only way out was a reboot. I was troubleshooting with an attached monitor and keyboard and accidentally hit a key when the camera was hung, which led to the revelation.
I'm not sure if this is the solution for anyone else, but you can add it to the list of things to try if you're having the same symptom. Good luck!