Born2Golf has it dead on. MP is purely the size of the image.. has nothing to do with quality. There are 5MP cameras that shoot much better images than 12MP cameras. It's the quality of the lens and the amount of light it can take in.
No app is going to make your camera take better photos. They modify the photo in some way, contrast, brightness, etc, that may make it look better than the original, and in the end that is probably all that matters.
Still, cameras are getting better, but like Born2Golf said, it will be years before you see the likes of a $100 10MP digital camera that you can buy now, in a phone. The quality of the lens + light intake is much better on those.
As for my original Droid 1..I think it takes excellent photos and shoots great video too. I've used videos of it in home movies and such and use it at my kids baseball games for photos and videos. I'd much prefer the Canon 5D or 7D.. but for what it does..it's fantastic in my opinion.
My wife's DroidX also takes excellent pictures and video. Of course, every phone I've seen so far has to be perfectly still or the shot comes out blurry.. and with no image stabilization, videos are jerky at best unless you have a steady hand.
I am hoping the Bionic shoots better video and pictures than my current droid.. assuming I can get one or something better doesn't come out that I get instead.. and assuming Verizon's 4G price stays intact.
