Image quality is affected by more than megapixels. iPhone pictures include considerable artifacts. Is there a way to adjust compression (increase file size) on standard iPhone?
Nope.
When you e-mail from your iPhone it will compress the size to something more suitable for e-mail. When you import photos through iPhoto you get the full res/size. Either way, there's no camera setting you can change at all.
How's this for iPhone photo from my Sony Bravia 40" LCD, then PS'd to death?
It's all good. This photo started as a USMC commercial on my television, captured by my iPhone, then sent to my email, and Photoshop'd with the sun in the background on the San Francisco side of the Golden Gate Bridge. Normally, the sun is on the Marin/Sausalito side of the GGB. It was fun.