I have to disagree, my Focus camera takes wonderful shots.
Here is an example of one of my pics with my Focus (scaled down to save space):
http://forums.windowscentral.com/attachments/windows-phone-7-os-talk/18621d1302794646-photo-jpg
The annoying things about WP7 is that it does not save your settings. So every time you load the camera app, you need to go to settings and turn Wide Dynamic Range and anti-shaking to on.
It focuses plenty fast for me; I just wish the shutter speed was faster. What causes blurry images if the phone is moving (even slightly) while taking the image. The faster the shutter, the less of an effect moving has. So in order to take really good pictures you have to hold it perfectly still; and the closer things are the more still you have to hold it. It is hard and takes some practice, but once you get it really steady it takes really great pictures, I think. I find it is best to push half way and focus, hold it for a second and push all the way down to take the picture. And my hands are positioned not as one would naturally think in order to hold it still, but it works for me. Holding still is the key.
Keep in mind, if you are emailing your self the pictures, it is automatically downsizing it. The only way to get the full resolution pictures is to upload it to the SkyDrive or sync with Zune.
But, no matter if you have the best camera in the world, you have to have good content and GOOD lighting. All a good photographer is on the technical level is a good light meter, and good and moving around the frame of view for optimal lighting. The best photographer and the best camera in the world still takes crappy pictures with crappy lighting.