This is false, coming from the N8, I agree it's not the N8 by any means, but as Damian Dinning says, the whole set up is 70% smaller, once you take that into effect, you realize quickly, that the camera is not that bad at all...

Video's aren't bad at all either, I've taken video's in clubs and I've taken video's during the day, they turn out pretty damn good for something that's 30% the size of the N8's camera module...