My iPhone battery wasn't lasting as long as it should and so Apple today replaced my iPhone. I was in a restaurant and just playing about with the camera and the picture looked particularly good, much better than I'd come to expect, especially as the lighting conditions were bad. So I took my friends iPhone which was purchased at launch and took a few shots with each and compared them side by side and mine was significantly better. The image was much more crisp, brighter with less blur around the edges. Was the camera hardware upgraded later in the iPhone 3G's life? I will try upload both pics so you can see the difference.