my DX pictures have always been pretty decent... you guys are letting it focus, then taking the picture, it is a two stage button...?
Yup. Same as my Canon PowerShot -- press halfway to focus, then the rest of the way to take the picture. Works great in daylight ... not so much in low light or at night.
I third that sentiment.
When you're dealing with such a small package, external factors beyond the X's control come even more into play, such as lighting. Also, while the LED flash is nice, it's still a built-in flash. I've used DSLRs for years, and know that when indoors or in poor light, built-in flashes are pretty much little pieces of junk that are of minimal help. For close-ups, maybe, but for long shots, forget about it.
Having 8 mp on the X is nice, but you should never be under the impression that it'll be the same quality picture as a regular 8 mp camera. All cameras aren't created equal.
Oh, and it's a phone, not a camera.