I'm going to ignore all the invective and focus on the photos posted. My own cameraphone really sucks, but this is a completely different world of bad that strongly suggests a manufacturing defect in your specific iPhone's camera.

To be sure, I'd like to see pictures taken in broad daylight, where there's no question that the iPhone camera should be able to take a perfectly fine photo. If it can't, then you know you need to swap cameras.

If the broad-daylight photo is good, then things get more complicated. It's possible, albeit unlikely, that the camera is fine but the LED flash is fubar. Either way, you clearly want to get the thing replaced.