Apparently, you have never used a point-and-shoot camera in your life.People don't realize that if they put the flash off center like that, it will increase side shadow tremendously...
Having a two-inch separation between the lens and the flash does almost nothing to create "side shadow." What it does is reduce red eye marginally.
Besides, "side shadow" is more flattering than deer-in-the-headlights lighting. That's why wedding/event photographers use flash brackets, diffusers, and/or bounce.