I've been taking photos outside and inside with my Droid and I have to say the photos I am taking aren't no where near as bad as people try to say.
From what I have noticed, when you are actually using the camera app and the photo snaps, the pictures look fuzzy a tad but when I actually open the photo I just took in the gallery it looks not fuzzy at all and looks clear as a bell.
Here are some photos I took just this weekend!.
Here is the last one with indoor lighting.
Sorry if the post is gigantic but these are straight from what the camera took. Just so everyone can see the quality right from the phone.