When it comes to image quality, well, nothing will trump a decent DSLR, and if you're the sort of person who has a DSLR, and consider yourself a photographer, then the image quality of your phone camera might matter to you on the basis that if you don't have your DSLR to hand, then the best camera is the one you have with you.
For everyone else however, a phone camera is something you grab and snap with, and whilst other cameras may be better, that doesn't mean the L800 is terrible.
On my iPhone (I plan to move to the L800), I use the integrated camera app, and also Camera+. With WP7 handsets, there are also plenty of third-party apps that will help maximise image quality, both at the time the picture is taken using techniques like HDR, and afterwards using image enhancement.
There's no reason to beleive you won't be able to take great pictures with the L800, but if image quality matters to you enough for this CNET report (and it's just one report) to be considered a deal breaker ... well, might I suggest you ask yourself "Am I a photographer?" and if the answer is yes, maybe you'd be better off with a DSLR.