Easy, easy, this is the reason we get labelled as "Fanboys".
stevearm has a point, which I believe is that Apple claimed that the iPhone was years ahead of its competition. In some ways, this is true (multi-touch interface) but in other ways, it is not (generous list of features the phone is lacking, and yes, this includes the lack of a best-in-class camera).
The real question is "Should it have been?" It'd sure be nice if the iPhone had included a top-of-the-line camera, 3G, etc, etc, but then again I'm not so sure I'd be keen on paying $999 or whatever it would have ended up costing.
Apple made some compromises in other areas in order to give us what they've given us. Should they have? That's the real argument here.