Well, motorola has acknowledged there's an issue.
We’ve been exploring several options to improve the camera. Some items are already on the list – we will fix the intermittent split-flash problem that produces a picture split into light and dark halves. We are working on the intermittent red-tint issue. Other areas are more difficult because any change to improve one area will create other artifacts -- and someone will object to those.
That being said, we have a plan to improve, and much of it is based on the feedback gathered from this thread and others. Thank you. It won’t be fast because it requires changes beyond what we can do through updates to the Camera app itself. But we’re going to make changes that in addition to the items above, should improve sharpness and detail.
I cannot comment on the timing of updates, so I can only ask for patience as we work through this. And again, thanks for the feedback; the photos and observations posted and sent via email were instrumental in helping us get to this point.
Probably that timing will be for Android L's release on our phone.
EDIT: Meanwhile, make sure the lens is always clear, and take pictures using the continuous mode. That is, tap on the screen as if you were to take a picture, but hold it. Once you see 1,2,3,etc numbers, you can release. That's the number of pictures taken.
The thing is, taking pictures that way, they turn out sharper and a bit noisier.. but much better overall. Afterwards you can delete the extra ones and keep the best.