I don't think its a firmware issue, this is because of the crappy OS. My camera was very good with out any updates. Only when upgraded to Amber, it sucks. Seems the image processing algorithm was modified.
Amber is a NOKIA Software/Firmware update, not an MS OS update. Are you here to contribute, or just troll?
To the main point, no, it's not too late, and thinking so because of Google's size and Apple's mind share is horribly flawed. The tech industry is littered with the corpses of failed companies who were once at the tip of the iceberg but were knocked off by another company. People were making similar arguments when Android came out, how it would never surpass the iPhone, yet it did. You can't rule out WP.
The thing MS has going for it over iOS and Android is it's unique. iOS and Android are both icons in a grid like OSes, the animations are similar, the feel of the OS is similar, etc. WP looks and feels completely different, and offers a refreshing choice. I switched from Android because aside from me getting irritated with Android's performance, I liked the look and feel of WP.
At the end of the day, people like choices, and WP offers a unique one. 8.1 fixes a lot of the issues with WP8, including some gripes I had. Filling those holes will just get more people to switch. I don't believe WP will overtake Android, but it'll settle in as a viable 3rd option.
Oh, and Nokia is carving out a niche with their camera tech.