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Which begs the question, does an Android phone exist that has optical zoom?

It's not very important to me, but it might be nice to know.

I would have to say no... as this would involve some complex inner workings in the camera and multiple lenses. We are not there yet.

And Digital zoom will always suck. Take a picture then use a good photo editor on your computer for cropping and get far superior results. Re-focussing within the camera does nothing for "digital zoom". This would mean that the image was out of focus to begin with.

If an image is sharp to begin with, then you will get the best results using a dedicated image processor. I personally use Nikon CaptureNX2, as it is what I am comfortable with. Probably not the best for JPEG but hey, I can do my RAW on it as well at the same time.
 
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