i don't have an iPhone, i have an iPod touch. and it has a lousy camera. i am inclined to believe that they lifted this camera unit from the iPhone 3GS so i believe that it should be pretty much the same. no one has been able to give me a straight answer on the specs of the iPod touch camera, but i am pretty sure it is nowhere near 5MP as one sales agent suggested. the 720p video capability is decent enough, but the stills are disappointing. on the apple website, the iPhone4 has a 5MP cam, which should be better than the one on the iPod touch. however, it is the available 'apps' that runs on iOS that keeps me amused in using the iPod touch. the regular camera just does not cut it. (note again, this is for the 4th gen iPod touch)
the N8 runs on Symbian OS3. the SE Arc runs on Android Gingerbread. i like nokia, and i know that it's solidly built. but it's using an ageing platform. while android is not perfect, it is at least at par (or close to) with iOS. and i've used a cybershot phone before, standard camera (non-app enhanced), standard settings, my 5MP C902 takes better pictures than my iPod touch.