That's certainly not my experience with the iPhone4 and the stock camera app. In fact I note quite often how it's just about the most pathetic camera I've ever used. Not counting $5 keychain VGA cameras of course.

When you press the shutter button the screen continues to update as it closes its virtual (and needless graphical) "shutter" (which are actually aperture blades of a lens and not a shutter at all) and i'm usually left with an image that's definitely not what was on the screen as I pressed the button. Usually something blurry, since it's impossible to take an in-focus shot with that camera without a tripod. But if your subject has any natural motion itself, you never know what you're going to get because the disconnect from pressing the shutter to what actually gets recorded feels makes it feel like an eon is passing by.

I really hope the new hardware and software make some big moves. SImply being better than all the rest of the junk out there at the same price point isn't good enough in my books. If it wasn't for all the third-party alternatives to the iPhone's stock software we'd be in a sorry state indeed. And that goes double for the camera app.