Like all cell phone cameras, the Droid suffers in low-light situations. This is a function of the sensor (and its size) rather than just software. There's only so much they can do with a sensor as small as the one they must use in a camera phone. It is also something ALL digital cameras suffer from in some form. Some are better than others, however, based on how well it shoots at higher ISO settings (one setting you can change to get a better exposure in low light situations is ISO--the higher the ISO the faster it will collect light--over simplification but you get the idea). Typically, the higher the ISO setting (with a digital camera), the noisier the pic. The better cameras can handle higher ISO settings and most less expensive cameras won't even let you manually set your ISO (they do it automatically).
In good lighting conditions, the phone is acceptable. It does tend to take a slightly less saturated pic but you can (if you like) fix that with post-processing. However, I doubt many people will want to do this since these pics are on your phone and I doubt most people take the time to move them to a computer to run Lightroom or something else and tweak them.
Photography is a bit of a hobby for me (I shoot with a Nikon DSLR). I don't expect the Droid--or any other camera phone for that matter--to take pics as good as I get with my Nikon. I just want it to be good enough for quick shots for FB and other things. It does that quite well and better than many camera phones out there. Each camera has its strengths and weaknesses, you just need to learn what they are for the Droid (I'm still learning since I've not had it long enough to know all of them).
It's funny reading about the complaints about the camera. I remember reading the same complaints--still do--from people with an iPhone but I've seen some stunning (yes stunning) pics taken with people's iPhones who knew what they were doing with it. From what I can tell, this is a better camera than the iPhone has. However, the original software sucked--not because of the quality of pics but because it was so slow and some of the other complaints people had about it. The updated software fixes the speed issues (more or less). I haven't taken enough pics to see if image quality has changed (for better or worse) yet.
