No biggie
20 pages late MacRumors. Nice job!
And yes people this is a real problem. It can affect the sports/exercise functionality (M7 Chip), many games, panoramic photos, etc. The phone does not know what level is, where north is. And they are all off to varying degrees. This is not a "your holding it wrong" fix. Its a potential recall of "x" million phones type problem.
Seriously? Recall? I don't recall hearing Apple making any claims about the accuracy of it's compass app. In fact, I don't recall hearing anything about this app in the lead-up to iOS 7. It was a pleasant surprise, and even if it's slightly inaccurate, it's miles ahead in functionality of the previous compass app.
Just because one app gives readings that are slightly off does not mean every app will be screwed. Most (if not all) apps make their own calibrations.
Either way, the iPhone does not actually have a level, so of course it does not inherently know what "level" is. It has an accelerometer, which spits out raw acceleration data for each of three axes, normal to each other but having an arbitrary absolute orientation. The interpretation of this data, and designation of "level", is handled by software/firmware.
Likewise, the iPhone does not actually have a compass, so of course it does not inherently know which way is north. It has a magnetometer, which spits out raw data directly related to the changes in the magnetic field. Software/firmware then combines this data with accelerometer readings to figure out where exactly to point the needle on the screen.
Unless your compass/level is sporadically jumping all over the place, I'd say this could be fixed by an OTA update.