Among all the iPhone's glorious attributes, its weakest link is its camera. As well as being slow, and just 2-megapixels in resolution, it only takes photos that called be called okay at best, and extremely blurry at worst. But there's a hint that the new 3.0 firmware will somewhat fix this issue.
iPhones.ru has performed a number of tests with photos taken under identical lighting conditions on iPhones running the existing firmware (2.2.1), and the developer beta test version of the upcoming 3.0 firmware.
Repeating the tests over and over again, the testers found the same result: iPhone 3.0 firmware resulted in far less blurry images (as you can see above). It's possibly because the upgraded iPhone is faster at pulling the image data from the sensor, which results in shorter exposure times, and thus less sensor saturation and reduced time for wobbling the phone while taking the photo. There's even a hint that the firmware is better at picking up detail in darkened shadowy areas of an image, perhaps by auto-detecting them and enhancing the contrast.
It's good news for existing iPhone owners, who'll be able to upgrade when the firmware goes public alongside the launch of the next-gen iPhone. This news hints strongly at Apple improving camera functionality in the new iPhone.