For my two pence worth, I too came from the N95 to the iPhone, and have to say that the camera is the biggest dissapointment to me.
I've had plenty of two megapixel cameras over the years, several windows mobiles, the SE K750, K800, P990i, etc. I have to say that the iPhone is the worst I've had.
My main issues with it are regarding the poor refresh rate of the screen/lens. I find that unless I hold it completely still or if anyone is moving in the shot then it comes out very blurry.
I agree with the comment above about the SE's (except the P990i) being marketted as camera specific phones, however the N95 was marketed as a Multimedia Computer, which I think is the iPhones marketing strategy also.
It's a real shame to me because I thought at the time that I could live with the 2MP camera, but it turned out to be worse than I thought it would be. I used to take lots and lots of photos on days/nights out and used to post a lot to facebook, etc. I find myself now not even bothering to reach into my pocket for my phone because I know how disappointed I'd be with the results. I haven't posted a photo to facebook since June! What does that say?
I totally agree with the notion that the camera was an afterthought. It wouldn't have killed them to put in some scene options, etc. Even a day/night mode. I can't think of another mobile with such limited options in the camera app.