Coming from a behold 2(Which imho has the best camera interface of any android phone, just ask around) to a nexus one camera, its not that bad. It takes better pics then i thought it would, the digital zooms ok, the flash is decent and the shutter speed is good. I stopped carrying a digital camera years ago because for my needs my cel phone camera has been enough, but im also aware that the quality of my pics may vary depending on how and when i use my camera. The nexus is decent but then again its not the camera that i would use at my wedding, but its fine for a day at the beach or taking pics at the bar/party.
I think to many people hear 5 mega pixels and expect it to be a great camera forgetting that mega pixels has nothing to do with picture quality and everything to do with the resolution.