I'm not familiar with the app, but really, you can't make something from nothing. There are some anti-noise filters that might help the lowlight noise, but other than that it's like putting lipstick on a pig (unless you're into that sort of thing
). I seldom discount Apple products, but I will when it's needed.
The front camera is poor, but if you use it for FaceTime with descent lighting, it works ok.
The rear camera just wasn't all that useful for me. It's fixed focus, has not-so-hot lenses, and suffers from low-light noise. Not sure what the reasoning was - it could have been just too thick. The iPad 3 is already thicker because of the extra LED backlights and the battery, so it might have been just enough to get a descent camera in the iPad 3 and, now, the 4th gen. (I sold my iPad 2 and got the iPad 3 on launch day last year.)
Again, with good lighting and not trying for close ups, you might get some useable images out of it.
As I had an iPhone 3GS, then iPhone 4S, I didn't need to rely on the iPad 2 very often. Also, it was easy to pickup the iPhone sitting next to me.
The one thing that now drives me to take an image on the iPad 3 is being able to more easily edit stills and video on the large display. It's easy to "beam" between iPhoto on the iPhone and iPad 3. It's a descent enough camera that I don't hesitate to use it if that's what's handy. The iPhone 4S is still a better camera, though.
With all that out of the way, here's what photo apps I have on the iPad: Camera! and Top Camera for the live shot apps; for post, I have iPhoto, PhotoGene, Photo Fx Ultra, Luminance and Snapseed. Those all have their own strengths and weaknesses. iPhoto is great for quick crops and adjustments; PhotoGene is good for text and simple drawing layers. The oher three are mostly adjustment and filters. Also have PS Touch that has a few cute tricks.
Even though I agree the iPad 2's camera isn't too terrific, you can probably squeeze a it more out with the above (or similar) apps.