The lens cleared up yesterday afternoon. I have an appointment today at the Apple Store but I am going to call and just have them keep a record of the problem. Obviously it is not sealed very well if condensation can enter and leave the device.
Uhh, I'd have it swapped out. I've used my iPhones in steamy bathrooms, hot and cold environments and I've never had condensation in the camera. That would tick me off BADLY cause I rely on the camera quite a bit.