One of the things the iPhone has got a lot of stick for is the camera. It stayed at 2MP when the 3G version came out. I didn’t think that would be a problem; actually because it’s always with me I’ve used it a few times and the picture quality (not the resolution) bugs me. Review said it had good quality for a phone camera, that’s as maybe, but phone cameras are awful. Plus it does weird stuff like this (it is, I have discovered, a known issue) which makes me wonder how this camera actually works.
If Apple were to make it work with video, however, all will be forgiven.