I agree with those who say there is a lot of noise in Phil's photos. Question is: what is that due to? It's a jpeg, and it could be getting re-compressed at any point from the camera software to AC's servers.
Also, these are indoor shots which usually have poor lighting, and this causes the camera software to crank up the ISO, which leads to noise.
Have a look at this shot:
https://plus.google.com/108233028875375016776/posts/9LVn5dEzm8Y
(download the full size file by clicking on "options" in G+) If you zoom in to 1:1, you can see that the leaves in the center of the pic are nearly perfectly sharp. So that's good. If you look towards the outside things get more mottled. It might be that the camera's jpeg compression algorithm does not handle blurry areas very well and makes them look mottled instead of having a clean bokeh. If that is the case, any slightly blurry shot (due to motion or lack of focus) will look noisy at 1:1.
So I wouldn't yet conclude that the camera really has issues. It appears it has good potential, but like any cell pone camera with a tiny sensor, difficult lighting conditions will not result in incredibly sharp pictures at 1:1.