Gotta agree it is mediocre at best.
And most of the time it is below average, which means it is a good photo but a horrible photocopy (fax/document). There's just not enough dedicated pixels to render them properly.

The only good feature is Google Documents, which can detect and convert the washed out letters into words. But with 12MP 1080p Nokia N8 quality cameras, and a better (app) implementation... I think we can have a (decent) mobile scanner.

Reminds me of my All-in-One Lexmark that used to automatically scan documents into Word, including logo's which would just be pictures and would put them into the right spot of the .doc something like that would be cool to have on a (Android) tablet (7in?)