I wasn't concerned about the "blurry" image. It was the crazy gray blobs it put in the sky. The software over corrected the photo. Not a big deal. At the time I Thought it was funny. It doesn't happen all the time. In this instance I prefer the non HDR image. Only posted to show that occasionally HDR goes wacko.
I'm not surprised it went wacko. If you read this thread it should become obvious why it's going wacko. Probably the images it needed to combine were just too dissimilar and it did the best it could.
Personally, I only switch on HDR when the situation calls for it. My criteria for using HDR is something like this:
1. Something with a high dynamic range (which rules out most indoor situations) that the camera can't capture properly. If a normal photo gets the picture I want, why complicate it with multiple photos that then must be merged? Plus I think non-HDR photos are quicker since you're taking only one and not combining any.
2. I can make my camera stable. A tri-pod is best (my GorillaPod fits nicely in a pocket). Otherwise I look for something to brace the phone against. Hand-held is a last resort.
3. I'm trying to take a picture of something static. I do my best to avoid HDR when there are people in the photo. Having everything still will produce better results. People, especially when there are multiple people involved, have a hard time staying perfectly still. Still, sometimes the situation calls for it. So then I'll do multiple HDR photos and a couple non-HDR photos as a backup.
4. If there is other movement in the background that I can't control such as a windy day causing lots of tree movement, traffic in the background, other people in the picture, etc., I either move my position to eliminate those things or turn off HDR.
I honestly don't understand people who just turn it on and leave it on. To me that's as crazy as always having the flash on regardless of circumstances. HDR is a fantastic tool under the right conditions. If you're using it outside those particular circumstances, you're just making things harder on yourself and won't get as good of pictures overall.
Use the right tool for the job!