How bad is it? You decide. I'm going to post three sections: Indoors with full natural light, outdoors, and low light. For this test, I took identical photos from four different sources: Insignia HD NS-DCC5HB09: 5MP Palm Pre Plus (Verizon): 3MP HTC HD2 (T-Mobile): 5MP iPod Touch (4th Gen): .7MP Indoors With Full Natural Lighting Because I like irony, I took a snap of the Zune HD's box. On the left is the iPod Touch 4g. On the right is the HTC HD2 from T-Mobile. The pictures are sized, according to Snow Leopard Preview, the exact same resolution pixel count. HTC HD2 at its peak is in the thousands due to the high pixel count, so smaller it comes out looking crisp and clean. iPod Touch 4g for some reason is zoomed in greater than it really should be, IMO. Even zoomed everything looks extremely muddy. Outdoors For outdoors I needed something with a little more color, so I chose my bottle of N.O.XPLODE which is quite colorful and glittery, standing out in the sun quite tremendously. On this test I paired up the Touch with the Insignia HD camera/camcorder (realized I forgot to mark these. The Touch on the left, the Insignia on the right). The Insignia is known for taking good quality videos, but subpar photos except at smaller size. Clearly from the photos, even direct sunlight isn't enough to save the Touch's camera. The Touch had greater detail than the Insignia due to the Insignia's focal point viewing (a feature the iPhone 4 also has but the Touch lacks). The Insignia, even with apparently is a dirty lens, still put out a superior photo (obviously, since it's an actual camera, but the point is to illustrate how bad the Touch's camera really is.) Low Light Conditions Time to call in the Palm Pre Plus as the lowest resolution camera device I've currently got access to besides my MacBook Pro. The room this was taken in is not pitch black, but it's a fairly darkened hallway. What stood out is that the Touch seemed to scrape for every ounce of light possible to compensate for the dark conditions whereas the Pre accepted and showed what the naked eye could see. Even with this compensation the Touch's photo was absolutely horrid.