iPhones.ru has put together a test comparing the photo quality of iPhones running the OS 2.0 and 3.0, respectively (same hardware). In light of the significant progress made in version 3.0, it is fair to say that the hardware was not as crappy as previously thought and that it was a software problem all along. If that’s true, the good news is that legacy users will indeed benefit from the update, which is awesome. Also, the next iPhone (3rd Gen) will have better a camera too.
The photo quality has been on the top list of complaints since the beginning, but was (reasonably so) pushed back in favor of more important issues, like the app store MS Exchange compatibility in previous updates.
iPhone 3GS won't be upgraded to iOS 5.x, says Eldar Murtazin
Your Apple device knows where you've been, and keeps a log
iOS Outreaches Android by 59% says Comscore
iPhone 5 is dual GSM+CDMA, looks like an iPhone 4